nikkei 225 further potential corrective decline after minor rebound 1852132017
Medium-term (1 to 3 weeks) technical outlook (Click to enlarge charts) What happened earlier/yesterday The Japan 225 Index (proxy for the Nikkei 225 futures) had […]
Medium-term (1 to 3 weeks) technical outlook (Click to enlarge charts) 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 tumbled in yesterday’s U.S. session and broke below the 12700/600 medium-term pivotal support. In addition, the USD/JPY had also broken below the parallel 112.00 medium-term pivotal support. Our earlier bullish view for a last push up towards the 20200 risk level had been invalidated reinforced by the on-going political uncertainties in U.S. that could derail U.S. President Trump’s fiscal policies on tax cuts and infrastructure spending. Please click here for a recap.
Yesterday’s break of those aforementioned key pivotal support levels have open up scope for a deeper decline to retrace the multi-month rally of the Nikkei 225 that is in play since 19 June 2016 low.
Intermediate resistance: 19700/770
Pivot (key resistance): 20000
Supports: 19420 & 19200/120
Next resistance: 20950 (0.618 Fibonacci projection from 24 June 2016 low)
Potential multi-week corrective decline in progress but the Index may see a minor rebound first towards 19700/700 intermediate resistance above 19420 before a new downleg materialises to target the next support at 19200/120.
On the other hand, a clearance above the 20000 medium-term pivotal resistance opens up scope to resume the primary degree up move towards the next resistance at 20950.
Charts are from City Index Advantage TraderPro
Disclaimer
This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this email, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs. All queries regarding the contents of this material are to be directed to City Index, a trading name of GAIN Capital Singapore Pte Ltd.
Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit cityindex.com.sg for the complete Risk Disclosure Statement.