ADX Technical Overview

ADX Technical Overview

Testing key level at 4600.

Long term trading scenarios are postponed at the time being since weekly charts are still reflecting Bearish trending characteristics and will remain so as long as prices remain below the previous weekly top. While the strong medium-term rally led to extreme overbought levels, and consequently initiated a short term correction. However, the short term Bullish bias seems to be gathering momentum while preparing for another strike higher once breaking above 4600. Traders of the short term should be ready to reposition longs with that breakout where they can target the 4520 and 4650 levels. Only a drop below 4560 would indicate that a short-term top is in place at 4600 and turn focus to the downside.