Nikkei: technical indicators point to a lower open

By FXStreet FXStreet (Córdoba) – The Nikkei 225 fell 337 points or 1.89%, closing Wednesday at 17.891.00, pressured by previous Wall Street’s fall and more signals that China’s economy is slowing down, affecting the rest of the world.

The Japanese index extended its decline after the close by another 200 points, tracking US indexes and pointing for a continued fall for this Thursday.

Nikkei technical view

“Technically speaking, the daily chart shows that the index has returned below its 20 SMA, now bearish around 17,891, whilst the technical indicators have turned sharply lower, with the RSI indicator anticipating additional declines around 42”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the index extended its decline well below its moving averages, the Momentum indicator holds flat well below its 100 level, and the RSI indicator is partially losing its bearish slope in oversold territory, maintaining however, the risk towards the downside”.

Bednarik locates next support levels at 17,632, 17,522 and 17,447, while she places resistances at 17,770, 17,845 and 17,980.
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Source:: FX Street