The price failed to form a new high, while the Stochastic indicator remains above the 20 level. This divergence, marked with a red line on the chart, indicates weakening of an upward momentum and increases the probability of a price decline.
The RSI indicator is now below the mark of 50. The position of the indicator below this level indicates the predominance of a downward trend.
The histogram of the MACD indicator remains above the signal line, indicating the local development of an upward movement. However, the indicator indications do not contradict the signal, marked on the chart.
Short positions in respect to DAX 40 look more warranted strategically. More conservative traders may consider entering upon a retest of this level. With a more aggressive strategy, a trader can enter at or around the current prices.
📌 Entry: 23237.56
✔️ First target: 23076.76
✔️ Second target: 22924.81
❌ Stop order: 23343.15
DAX 40 H1: A reversal signal from the Stochastic indicator
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