nikkei 225 further potential push up above 1676516645 support 1832972016

Daily Outlook, Wed 05 Oct 2016

(Click to enlarge charts)

What happened earlier/yesterday

The Japan 225 Index (proxy for the Nikkei 225 futures) has continued to inch higher (rallied by 3.2% after a test on the 16340 medium-term pivotal support seen on last Friday, 30 September) as expected in line with the bullish breakout of the 101.85 upside trigger on the USD/JPY as global risk aversion behaviour eases.

Please click here to recap our latest weekly technical outlook/strategy published on Monday, 03 October 2016.

Key elements

• Short-term bullish trend remains in place since the 30 September 2016  swing low of 16335 remains intact as the Index remains above its ascending trendline (depicted in light green) now acting as a support at 16765 (see 1 hour chart).
• The key short-term support now rests at 16645.
• The key short-term resistance remains at 17165 which is defined by the intermediate range top in place since the 31 May 2016 medium-term swing high area (see daily chart).

Key levels (1 to 3 days)

Intermediate support: 16765

Pivot (key support): 16645

Resistances: 16990 & 17165

Next support: 16340 (medium-term pivot)

Conclusion

Maintain bullish bias. As long as the 16645 short-term pivotal support holds, the Index is likely to see another push up to target 16990 before the intermediate range top of 17165.

However, a break below 16645 may put the bulls on hold again for another round of choppy decline to retest the 16340 medium-term pivotal support.

Charts are from City Index Advantage TraderPro

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