nikkei 225 daily outlook for wed 06 may potential recovery above 19300 weekly pivotal support 571782
<p>(Click to enlarge charts) What happened yesterday The Japan 225 (proxy for the Nikkei 225) has declined towards our expected target at 19550. In the […]</p>
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(Click to enlarge charts)
What happened yesterday
The Japan 225 (proxy for the Nikkei 225) has declined towards our expected target at 19550. In the U.S. session, the Index has continued to tumble towards the 19300 weekly pivotal support.
Please click on this link to review our previous daily outlook.
Note: Japan stock market (cash trading) will be closed for national holiday today, 06 May 2015 (Wed) and will resume trading tomorrow (Click link for details).
Key elements
- The Index has declined back towards the lower boundary (support) of the long-term ascending channel (in dark blue) in place since 16 October 2014 low at 19300 (see daily chart).
- The 19300 support is the current weekly pivot (please click on this link for more details on our latest weekly outlook).
- The hourly RSI oscillator has managed to stage a rebound from its support and just exited from its oversold region (see 1 hour chart).
- The short-term resistance at 19600 also corresponds with the 61.8% Fibonacci retracement of the recent down move from 04 May 2015 high to 05 May 2015 low (see 1 hour chart).
Key levels
Pivot (key support): 19300
Resistance: 19600
Next support: 18900
Conclusion
As long as the 19300 pivotal support holds, the Index is likely to see a potential recovery towards 19600.
However, failure to hold above 19300 may put the medium term bullish trend at risk for a further decline towards the next support at 18900 in the first instance.
Disclaimer
The information contained in this material 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. All queries regarding the contents of this material are to be directed to City Index Asia Pte Ltd.
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