ADX Technical Overview

ADX Technical Overview

Accelerated downside pressure.

The formation of a weekly top below 4650 defined as June high, presented strong worrying signals that was recently materialized with the drop below 4350. That move marked the exit of the long term range that was capping the market since January, and turned our focus to the downside for a move towards 4179 November 2016 Low. The strong Bearish structure revealed on the daily charts is amplifying the case for further declines obliging thereby traders to refrain from accumulating any new long positions. At current time, the retest of 4179 seems to be strongly possible with a drop below 4260 intraday pivot providing an early warning. Only an immediate break above 4310 can shift the short term bias towards an upwards retracement.