nikkei 225 daily outlook tues 01 dec potential pull back before new rise above 1985019700 support 17
<p>(Click to enlarge chart) Key elements Yesterday’s pull-back in price action of the Japan 225 (proxy for the Nikkei 225) has managed to find support […]</p>
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Key elements
- Yesterday’s pull-back in price action of the Japan 225 (proxy for the Nikkei 225) has managed to find support just above the 19700 which is defined by a short-term range bottom in place since 20 November 2015 low @8am, close to the lower boundary of the medium-term bullish ascending channel in place since 29 September 2015 and a Fibonacci cluster.
- The short-term intermediate support rests at 19850 which is the minor swing high formed yesterday, 30 November @7pm.
- The hourly (short-term) Stochastic oscillator is coming close to its extreme overbought level which suggests limited upside potential and the Index may see a pull-back below the 20050 short-term range top.
- The next significant short-term resistance stands at 20450 which is defined by the 1.00 Fibonacci projection (the minimum bullish impulsive wave 3 target of a lower degree based on the Elliot Wave Principle) of the up move from 16 November 2015 low @7am to 19 November 2015 high @9am projected from the 30 November 2015 low @11am.
Key levels (1 to 3 days)
Intermediate support: 19850
Pivot (key support): 19700
Resistance: 20050, 20190 & 20450
Next support: 19190 (weekly pivot)
Conclusion
Overall, the technical outlook is bullish. However below 20050, the Index may see a pull-back first towards the 19850 intermediate support before a potential rally occurs to target the next resistances at 20190 before 20450.
On the other hand, a break below the 19700 daily (short-term) pivotal support is likely to negate the bullish expectation for a deeper pull-back to test the 19700 weekly pivotal support (click here for details on our latest weekly outlook/strategy).
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