Nikkei: downside favored – FXStreet

FXStreet (Córdoba) – The Japanese Nikkei tumbled to a 1 month low of 18,527 Monday, closing the day at 18,883.42, down by 1.80% or 340 points, weighed by the continued decline in oil prices that dragged lower energy-related stocks around the word. The recent yen’s appreciation against the greenback, also pressured the index.

Nikkei technical view

“The daily chart suggests the decline is far from over, as the index fell further below a bearish 100 DMA, whilst the technical indicators remain well below their mid-lines, with limited negative strength at the time being, mostly due to the latest intraday bounce than a reversal in the dominant trend”, said Valeria Bednarik, chief analyst at FXStreet. “In the shorter term, the 4 hours chart shows that index continued developing below a sharply bearish 20 SMA, while the technical indicators aim slightly higher below their mid-lines, limiting declines at the time being. Nevertheless, renewed selling pressure below 18,700 should favor a retest of the mentioned low, en route to the 18,000 level later this week”.

Support levels: 18,700 18,632 18,527. Resistance levels: 18,774 18,865 18,948.

The Japanese Nikkei tumbled to a 1 month low of 18,527 Monday, closing the day at 18,883.42, down by 1.80% or 340 points, weighed by the continued decline in oil prices that dragged lower energy-related stocks around the word. The recent yen’s appreciation against the greenback, also pressured the index.

(Market News Provided by FXstreet)