EWG Germany Weekly Chart Negative Divergence

The EWG is an ETF that reflects Germany. Price is near the black trend line. The action over the last few months results in higher highs in price but the indicators are negatively diverged. The stochastics are back in overbot territory. The blue dots show that as price continues to test the same price level, the volume participation continues to leak lower with less and less traders interested. The indicators were not enthusiastic about the bottom that was placed in early June. The MACD line, stochastics and money flow especially were not satisfied with the bottom and want to see the price level at 18-19 to be tested again in the future.

The 24.20 horizontal support is a very sturdy ceiling that also forms a confluence with the black multi-year trend line, a logical place for a reversal.  The outlier scenario is price jumping up to 26-ish on what would have to be excellent news in Euroland occurring.  Do not hold your breath for this outcome although as a technician you have to be aware. A move above 24.20 will require further assessment, especially a move above 24.50.  Projection is a roll over at anytime in the coming one to three weeks, topping at 24.20 or lower, heading down towards 22 for starters. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here.  Consult your financial advisor before making any investment decision.