nikkei 225 daily outlook tues 17 nov bullish tone remains intact above 19560 support 2624452015

(Click to enlarge chart)

Key elements

• The Japan 225 (proxy for the Nikkei 225) has continued to push higher as expected and broke above the former short-term trendline resistance from the 11 November 2015 high now turns pull-back support (in dotted green).
• Since yesterday, 16 November 2015 low of 19239, the Index has started to evolve within a short-term bullish ascending channel with upper limits (resistances) at 19840 follow by 20040/20050 next.
• The aforementioned 19840 and 20040/20050 resistances also confluences with the 1.00 and 1.618 Fibonacci projection of the current up move from 16 November 2015 low @7am to 16 November 2015 high @6pm projected from 16 November 2015 low @9pm.
• Do note that 20050 resistance is also the lower limit of our medium-term expected upside target as per highlighted in our latest weekly outlook/strategy (click link for details).
• The lower limit of the short-term ascending channel and pull-back supports (both trendline and horizontal) confluences closely at the 19560 level.

Key levels (1 to 3 days)

Pivot (key support): 19560

Resistance: 19840 & 20040/20050

Next support: 19190

Conclusion

Latest price action has reinforced our latest bullish view (as per highlighted in our weekly outlook published yesterday, 16 Nov) that the pull-back/consolidation phase has ended and Index is now in the midst of undergoing a potential medium-term (multi-week) upside movement.

In the short-term as long as the 19560 daily pivotal support holds, the Index is likely to shape a further potential push up to target 19840 follow by 20040/20050 next.

However, failure to hold above the 19560 pivotal support negate the bullish tone to see a slide to retest the 19190 support.

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