CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
☰
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
✖

Featured Trade Bearish reaction in Nikkei 225 below key MT resistance

Article By: ,  Financial Analyst
February 6, 2019 9:27 PM

Short-term technical outlook on Japan 225 (Thurs 07 Feb)

Key technical elements

  • Since its 31 Jan 2019 low of 20639, the Japan 225 Index (proxy for the Nikkei 225 futures) has continued to its slow grind upwards within an average tight range configuration of 280 points, the lowest since the start of the rebound from 26 Dec 2018 low of 18970 within a minor bearish “Ascending Wedge” range configuration (see 4-hour chart).
  • It has printed a recent minor high of 20983 on 05 Feb 2019, U.S. session right below the 21020 key medium-term pivotal resistance (click here for a recap on our previous weekly technical outlook), also the upper boundary of the medium-term descending channel from 01 Oct 2018 high of 24478 before it reversed down and broke below the minor “Ascending Wedge” support in today, 07 Feb Asian session (see 1-hour chart).
  • 4 and 1-hour Stochastic oscillators continue to inch downwards and still has not reached their respective extreme oversold levels. These observations suggest that short-term downside momentum of price action remains intact and not “overstretched” at this juncture.
  • Key short-term resistance stands at 20920 which is defined by the pull-back resistance of the former minor “Ascending Wedge” range support from 26 Dec 2018 low.
  • The significant near-term supports rest at 20510/450 (23.6% Fibonacci retracement of the rebound from 28 Dec 2018 low to 05 Feb 2019 high & minor swing low of 24/29 Jan 2019) and 20200 (38.2% Fibonacci retracement of the rebound from 28 Dec 2018 low to 05 Feb 2019 high & former swing high area of 27 Dec 2018)

Key Levels (1 to 3 days)

Intermediate resistance: 20860

Pivot (key resistance): 20920

Supports: 20510/450 & 20200

Next resistance: 21020 (medium-term pivot)

Conclusion

The Index may see a further push down below the 20920 key short-term pivotal resistance to target the near-term support of 20510/450. A break below 20450 opens up scope for a further potential decline to test the next support at 20200 (also the medium-term downside trigger level).

However, above 20920 negates the bearish tone for another round of choppy push up towards the 21020 key medium-term pivotal resistance.




StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.

© City Index 2024