DAX Weekly and Monthly RSI perspective (Update I)
This is update I of RSI perspective for the timeframes Weekly and Monthly. I try not to attach too much value to these types of views, as they say little about price and divergence between RSI and price can go on for a long time.
Monthly:
Monthly has broken the 2009 support and went a lot deeper than i (and probably many others) initially expected. RSI on this time frame seems to float mid air to me, having me think that this sell off is not over yet, but is merely taking a break here. So with monthly RSI flashing warning signs, i'm reducing my long positions significantly and i'll be on the look out for short opportunities. Nonetheless we can't ignore the weekly time frame and it being oversold on the RSI.
Weekly:
Weekly fel through all support and landed in the oversold yellow support area i've previously drawn. I think RSI will make either a bounce to previous support here or possibly stay stuck for a while below the descending tops resistance. Considering the steepness of this trend i think this trend will be broken and create momentum to move up through more resistance.
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Monthly:
Monthly has broken the 2009 support and went a lot deeper than i (and probably many others) initially expected. RSI on this time frame seems to float mid air to me, having me think that this sell off is not over yet, but is merely taking a break here. So with monthly RSI flashing warning signs, i'm reducing my long positions significantly and i'll be on the look out for short opportunities. Nonetheless we can't ignore the weekly time frame and it being oversold on the RSI.
Weekly:
Weekly fel through all support and landed in the oversold yellow support area i've previously drawn. I think RSI will make either a bounce to previous support here or possibly stay stuck for a while below the descending tops resistance. Considering the steepness of this trend i think this trend will be broken and create momentum to move up through more resistance.
* Like this chart? Feel free to give it a thumbs up!
