nikkei 225 risk of a short term bearish reversal below 19420 1844152017
Short-term Technical Outlook (Tues, 21 Feb 2017) (Click to enlarge chart) What happened earlier/yesterday In today’s earlier Asian session (Tues, 21 Tues), the Japan 225 […]
Short-term Technical Outlook (Tues, 21 Feb 2017) (Click to enlarge chart) What happened earlier/yesterday In today’s earlier Asian session (Tues, 21 Tues), the Japan 225 […]
(Click to enlarge chart)
In today’s earlier Asian session (Tues, 21 Tues), the Japan 225 Index (proxy for the Nikkei 225 futures) has rallied by 0.6% to print a current intraday high of 19373. This up move is likely to be triggered by a better than expected preliminary PMI manufacturing data for February 2017 as it came in at 53.5 versus a consensus figure of 52.1. Given this set of latest figure, Japan’s manufacturing PMI has notched a sixth consecutive month of reading above the 50 level since September 2016.
We had just published our latest weekly technical outlook on the major stock indices yesterday where we had maintained our medium-term (1 to 3 weeks) bearish bias on the Nikkei 225 (click here for a recap).
Pivot (key resistance): 19420
Support: 19177 & 18900
Next resistance: 19575 (medium-term pivot)
The Index is now right below a significant short-term pivotal resistance of 19420 where it faces a risk of a short-term bearish reversal. As long as the 19420 resistance is not surpassed, the Index may see a decline towards 19177 and a break below it is likely to see a potential acceleration towards the next support at 18900.
However, a clearance above 19420 is likely to put the bears on hold for a further push up to retest the 19575 medium-term pivotal resistance (the descending trendline from 09 January 2017 high).
Charts are from City Index Advantage TraderPro
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