Featured Trade Nikkei 225 bearish elements sighted at minor range resistance
Bullish exhaustion sighted in Nikkei 225 below minor range resistance.
Share this:
Short-term technical outlook on Nikkei 225/Japan 225 (Tues 28 May)
click to enlarge chart
Key technical elements
- The on-going rebound of 2.4% seen in the Japan 225 Index (proxy for the Nikkei 225 futures) from last Fri, 24 May Asian session low of 20797 has almost reached its minor range resistance of 21400.
- Interestingly, it has started to exhibit bullish exhaustion signals as price action has formed a minor bearish “Ascending Wedge” configuration in place since 24 May 2019, U.S. session low of 21047 with an extreme overbought reading seen in the hourly Stochastic oscillator.
- The significant near-term support to watch will be at 20800 as defined by the minor range bottom in place since 14 May 2019.
Key Levels (1 to 3 days)
Intermediate resistance: 21300
Pivot (key resistance): 21400
Supports: 21060 & 20800
Next resistance: 21900 (key medium-term pivot)
Conclusion
If the 21400 key short-term pivotal resistance is not surpassed, the Index may see a further potential push down to target 21060 follow by the minor range support at 20800 in the first step.
On the other hand, a clearance with an hourly close above 21400 sees an extension of the corrective rebound towards the 21900 key medium-term pivotal resistance as per highlighted in our latest weekly technical outlook report (click here for a recap).
Charts are from City Index Advantage TraderPro
Related tags:
Latest market news
Open an account in minutes
Experience award-winning platforms with fast and secure execution, and enjoy tight spreads from 0.5 pts on FX and 0.3 pts on indices.
Economic calendar
Web Trader platform
Our sophisticated web-based platform is packed with features.
Related articles
RBA delivers 25bp hike, Bullock now the main event
The RBA delivered the expected 25bp hike, but Bullock’s press conference now looms as the bigger volatility risk for AUD/USD and the ASX 200.
S&P 500 forecast: Stocks extend drop as correction risks grow
US and global equity markets have extended Wednesday’s sell-off, with Wall Street opening lower after a weak handover from Asia and Europe. The deterioration in risk appetite has been spreading across global markets. The dollar was firmer, Treasury yields were holding onto yesterday’s gains, while gold, silver and bitcoin were all under pressure alongside equities and major currencies.
ASX 200 Rebound Stalls Despite Wall Street Surge
The ASX 200 rebound is struggling for traction despite a powerful Wall Street rally, leaving 8800 resistance and downside risks in focus.
This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.
StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), StoneX Financial Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact StoneX Financial Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.
In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither StoneX Financial Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.
StoneX Financial Pte. Ltd. is not under any obligation to update this report.
Trading CFDs carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit www.forex.com/en-sg/terms-and-policies for the complete Risk Disclosure Statement.