Nikkei poised to open lower after Draghi

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 3, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Córdoba) - The Nikkei closed Thursday practically unchanged, up by 1 point at 19,939.90, as investors waited sidelined for the ECB's economic policy decision. The index started the day with a negative tone, but recovered amid a softening yen.

    Anyway, the deception triggered by Mario Draghi sent worldwide stocks plummeting, with Nikkei futures falling nearly 500 points in electronic trading.

    Nikkei technical perspective

    “Poised to start the day around 19,450, the daily chart shows that the index has fallen below its 20 and 200 SMAs, while the technical indicators are crossing their mid-lines towards the downside, increasing chances of further declines for this Friday”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the index has fallen well below a now bearish 20 SMA while the technical indicators have stalled around oversold levels, where are currently turning flat, suggesting some range consolidation before a new leg south”.

    Support levels: 19,405 19,322 19,250. Resistance levels: 19,492 19,565 19,620.
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