Tuesday, December 18, 2018
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Technical Analysis – Nikkei 225 regains ground

JP225 31/10/18 | EconAlerts


Nikkei 225 (Japan 225) index regains some ground after rebound on 20780.

The Japan 225 index has been outperforming since yesterday following the bounce off the 20780 support level. The aggressive bullish scenario is confirmed by the technical indicators; the RSI jumped higher from the oversold zone, sloping upwards, while the MACD is moving slightly higher, approaching the trigger line but stands below the zero line.

Should the index manage to strengthen the positive momentum, the next immediate resistance could come near the 22174 level, but the price needs first to post a closing day above 21830. A break above 22174 would challenge the 20-day simple moving average (SMA) near 22378 at the time of writing. The next level higher for investors to have in mind is the 22940 resistance, which stands near the 40-day SMA.

However, if prices create a pullback on 21830 and head lower, this would turn the risk to the downside towards the 20780 support. Below this level, the next target could come from the 20322 support, identified by the trough on March 26.

When looking at the bigger picture the price does not have a clear directional movement in the medium-term, however, in a longer timeframe the index has been creating an ascending movement since June 2016.

JP225 31/10/18 | EconAlerts



 

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Disclaimer:
This information is not considered as investment advice or investment recommendation but instead a marketing communication. This material has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.


Source: XM

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