nikkei 225 daily outlook tues 29 mar 2016 potential downside pressure below 17135 range top 18035420

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What happened earlier

The Japan 225 (proxy for the Nikkei 225 futures) has tried to push up and it is still capped by the “contracting/symmetrical triangle” range top at 17135.

Key elements

• Interestingly, the Index has continued to make any headway above the “contracting/symmetrical triangle” range top in place since 15 March 2016 high. The resistance of the range configuration stands at 17135.
• The hourly (short-term) Stochastic oscillator is still oriented to the downside and still has ample room before reaching its extreme oversold level.
• The short-term significant support above the “contracting/symmetrical triangle” range bottom of 16570/500 rests at 16750 (the minor swing low area of 24 March 2016 @9pm).

Key levels (1 to 3 days)

Pivot (key resistance): 17135

Supports: 16750 & 16570/500

Next resistance:  17315 (weekly pivot)

Conclusion

As long as the 17135 daily short-term pivotal resistance is not surpassed, the Index is likely to see potential downside pressure within the “contracting/symmetrical triangle” range configuration towards the 16750 support with a maximum limit set at the range bottom of 16570/500.

However, a break above the 17135 short-term pivotal resistance may negate the bearish tone to see a push up to test the 17315 weekly (medium-term) pivotal resistance.

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