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Nikkei poised to open lower

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 9, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Córdoba) - The Nikkei posted an impressive advance at the beginning of trading day on Monday, following the yen sharp decline saw by the end of the past week. The index added 384 points and closed the day 19,642.74, its highest in over two months.

    The index however, erased all of its intraday gains in after hours trading, poised to open strongly lower, around 19,360, following the strong decline in Wall Street.

    Nikkei technical perspective

    “The daily chart shows that the technical indicators have barely retreated from overbought levels, and are far from suggesting a bearish breakout, whilst the index is holding above its 200 DMA, all of which limits chances of a stronger decline”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the index approached a bullish 20 SMA, currently at 19,277, whilst the technical indicators head south above their mid-lines. Should the decline extend below the mentioned support, the index may maintain a bearish tone and approach the 19,000 level this Tuesday, albeit buying interest is expected to surge on dips towards it”.

    Support levels: 19,277 19,195 19,110. Resistance levels: 19,335 19,422 19,517.
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