nikkei 225 potential major top may have been formed 2684362017
Short-term Technical Outlook (Thurs, 12 Jan 2017) (Click to enlarge charts) What happened earlier/yesterday The Japan 225 Index (proxy for the Nikkei 225 futures) has […]
Short-term Technical Outlook (Thurs, 12 Jan 2017) (Click to enlarge charts) What happened earlier/yesterday The Japan 225 Index (proxy for the Nikkei 225 futures) has […]
The Japan 225 Index (proxy for the Nikkei 225 futures) has broken below the 19330 medium-term pivotal support set for this week (click here for a recap).
In our last two weekly technical outlook reports, we have been cautious on the on-going up movement of the Nikkei 225 in place since the post U.S. presidential election on 09 November 2016. The Index is coming close to the 19860/20000 major risk zone level and any potential push up is considered as “residual” in nature.
The current price movement of the Index in relation with the movement seen on the USD/JPY has increased the probability that a potential major top is now in place right below the 19860 level (the Index has printed a high of 19713 on Monday, 09 January 2013 which is just 0.7% away from 19860).
Intermediate resistance: 19260
Pivot (key resistance): 19400
Supports: 19050 & 18930
Next resistance: 19700
Technical elements have turn negative on the Nikkei 225. As long as the 19400 short-term pivotal resistance holds, the Index is likely to see a further potential decline in the coming days to target the near-term support at 18930 in the first step (the swing low area of 29 December 2016 and the 23.6% Fibonacci retracement of the up move from 27 September 2016 low to the recent high of 19713).
However, a clearance above 19400 may negate the bearish tone for another round of choppy up move to retest the 19700 resistance (major swing high areas formed in 20 December 2016 and 09 Jan 2017).
Charts are from City Index Advantage TraderPro & eSignal
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