nikkei 225 short term technical outlook potential push up in progress towards 17165 range top 183456

Tues, 18 October 2016

(Click to enlarge chart)

What happened earlier/yesterday

The Japan 225 Index (proxy for the Nikkei 225 futures) has managed to inch higher since the start of the week (up 0.5%) in line with a medium-term bullish trend that is still intact in the USD/JPY.

Please click on this link for a recap on our latest weekly technical outlook for the major stock indices published earlier.

Key elements

• The short-term key support now rests at 16780 which is defined by the minor pull-back support from 11 October 2016 high (depicted in dotted green) and a congestion area from 13-14 October 2016.
• The significant short-term resistance stands at 17165 which is the intermediate range top in place since 31 May 2016.
• Short-term upside momentum remains intact as the hourly Stochastic oscillator still has some room left (depicted by the blue box) to manoeuvre to the upside before reaching an extreme overbought level.

Key levels (1 to 3 days)

Pivot (key support): 16780

Resistances: 17165

Next support: 16600 (ascending trendline in place since 24 June 2016 low)

Conclusion

Maintain bullish bias above 16780 key short-term pivotal support for a potential push up towards the 17165 intermediate range top in the first step.

However, a break below 16780 is likely to negate the preferred bullish tone for a slide to test the next support at 16600.

Charts are from City Index Advantage TraderPro

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