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We will use the ADX indicator formed by ADX (black line), DI+ (green line) and DI- (red line). The Average Directional Index line (ADX) shows the strength of the trend, while the other two give indications of the current price momentum. In this chart, on December 10th 2018 the DI- crossed over the DI+ starting a long period of downtrend which, apart from the attempt at the end of 2019, badly identified by the ADX indicator, has been reconfirmed in February 24th 2020. On that time DI- clearly crossed DI+ as can be graphically verified.
Last week the ADX line apparently (with little conviction) started charging the downtrend with strength, although we are really close to an important support around 104.5.
This threshold at 104.5 looks like an excellent level to close short positions or open long positions in anticipation of a rebound that could bring prices back to around 110.00 during 2021.
We will use the ADX indicator formed by ADX (black line), DI+ (green line) and DI- (red line). The Average Directional Index line (ADX) shows the strength of the trend, while the other two give indications of the current price momentum. In this chart, on December 10th 2018 the DI- crossed over the DI+ starting a long period of downtrend which, apart from the attempt at the end of 2019, badly identified by the ADX indicator, has been reconfirmed in February 24th 2020. On that time DI- clearly crossed DI+ as can be graphically verified.
Last week the ADX line apparently (with little conviction) started charging the downtrend with strength, although we are really close to an important support around 104.5.
This threshold at 104.5 looks like an excellent level to close short positions or open long positions in anticipation of a rebound that could bring prices back to around 110.00 during 2021.