Daily Chart (Left)
- FXCM's GER30 CFD is positioned in its bearish channel, between the lower blue and red bands.
- The red Bollinger bands have started to diverge (black ellipses), which suggest an increase in volatility.
- The RSI is on the bearish side of 50 (blue rectangle).
- If the candlesticks maintain in their bearish channel and the RSI stays below 50, any increase in volatility will likely take the index down.
Hourly Chart (Right)
- R1 is acting as the active resistance pivot.
- This overlaps with price resistance (green shaded horizontal).
- The hourly trend-following EMAs are attempting to cross down (top black ellipse).
- The momentum-based stochastic has crossed bearishly (bottom black ellipse).
- If the EMAs develop angle and separation to the downside, and the stochastic settles in its lower quintile (blue arrow), a downwards momentum will be present.
- This will apply a pressure to the index.
Senior Market Specialist
Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.