ADX Technical Overview

ADX Technical Overview

Searching for support.

In the long term the market eased off the 52-weeks high, with a neutral outlook remaining in place. Therefore, traders shall wait for stronger technical indications before accumulating new long positions. The index broke higher following the breakout above 4500 that changed the short term outlook, where it rose above 4520 and touched 4550, before pulling back slightly. Short term traders who reached their second targets of 4550 should take advantage of this correction lower in order to reposition. The market is testing 4520 and entries should be activated only after clear reversal signs. At the meantime only an immediate break above 4550 could confirm the resumption of the short term uptrend, and act as trigger for short term longs.