ADX Technical Overview

ADX Technical Overview

Probable correction.

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. That move pushed negative sentiments into extreme levels and raised expectations for a probable medium term upside correction. Such correction had become more possible after the Bullish intraday reversal activated above 4310. For short term traders who decided to take advantage from that move targets are outlined at 4340 and 4380 with the 4260 pivot acting as the first line of defense.