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
✖

Nikkei 225 breaks higher on tech gains. Nasdaq 100 next?

Article By: ,  Market Analyst
September 14, 2023 6:11 AM

Japan’s Nikkei 225 is threatening to break out of the downtrend it’s been in since June, climbing above 33,000 thanks to gains in technology names on Thursday. And that may have implications for the Nasdaq given the tech-heavy index is continuing to bump up against downtrend resistance.

Nikkei turnaround gathers momentum

The Nikkei was looking susceptible to renewed downside just a few days ago, testing its 50-day MA and upslope support running from August. But having navigated several risk events, the most recent being the US inflation report for August, it’s now taking a second look above the top of its recent trading range. With little sign of reversal intraday, it may have success where it first failed last week.

If we do get a clean break, resistance around 33,330 would be the first target for bulls, where the index stalled last week. Beyond there, 33,500, 33,830 and 34,000 are the levels to watch, the latter marking the multi-decade high set in June. Should the break fail to be sustained, a move back into the range would rule the trade invalid.

Nasdaq to follow suit?

Given the driver of the Nikkei’s performance, keep an eye on the Nasdaq’s performance given it continues to bump up against downtrend resistance on an almost daily basis. If you look hard enough, you may even be able to see an inverse head-and-shoulder forming.

 

-- Written by David Scutt

Follow David on Twitter @scutty

 

How to trade with City Index

You can trade with City Index by following these four easy steps:

  1. Open an account, or log in if you’re already a customer 

    • Open an account in the UK
    • Open an account in Australia
    • Open an account in Singapore

  2. Search for the market you want to trade in our award-winning platform 
  3. Choose your position and size, and your stop and limit levels 
  4. Place the trade

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