nikkei 225 potential dead cat bounce due for another round of downleg 2689742017
Short-term Technical Outlook (Tues, 28 Mar 2017) (Click to enlarge chart) What happened earlier/yesterday The Japan 225 Index (proxy for the Nikkei 225 futures) had […]
Short-term Technical Outlook (Tues, 28 Mar 2017) (Click to enlarge chart) What happened earlier/yesterday The Japan 225 Index (proxy for the Nikkei 225 futures) had […]
The Japan 225 Index (proxy for the Nikkei 225 futures) had met the first medium-term downside target at 18880 as expected (printed a low 18875) before it staged a recovery in yesterday’s European and U.S. sessions.
Please click on this link for a recap on our latest weekly technical outlook that was published earlier.
Despite yesterday’s rebound after it printed a low of 18875, current technical elements do not advocate the start of a medium-term (1 to 3 weeks) recovery at the juncture.
Intermediate resistance: 19250
Pivot (key resistance): 19300
Support: 18880 & 18700
Next resistance: 19400 (medium-term)
Maintain bearish bias and view the current rebound in place since yesterday’s European session as a potential “dead cat bounce”.
As long as the 19300 key short-term pivotal resistance is not surpassed, the Index is likely to see another potential downleg to retest 18880 before targeting the next support at 18700.
However, a break above 19300 may put bears on hold to see a residual push up to test the 19400 medium-term pivotal resistance.
Charts are from City Index Advantage TraderPro
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