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Nikkei set to consolidate after holiday

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 23, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Córdoba) - The Japanese Nikkei was down this Monday on a local holiday, with the latest registered close at 19,879.81. Given the weak tone in European and American indexes, the Nikkei fell in electronic trading, and is pointing to open Tuesday some points below the mentioned level.

    The risk is towards the downside amid the broad weakness in base metals and correlated shares.

    Nikkei technical view

    “Technically, the daily chart shows that the technical indicators are retreating from near overbought territory, but that the index is still well above its moving averages, suggesting a consolidative phase ahead rather than confirming an interim top”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the index stands a few points below a mild bullish 20 SMA, while the Momentum indicator holds flat around its 100 level and the RSI indicator hovers around 52, lacking clear directional strength ahead of the opening”.

    Support levels: 19,820 19,763 19,685. Resistance levels: 19,870 19,942 20,038.
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