Nikkei holds clear bullish potential

By FXStreet FXStreet (Córdoba) – The Nikkei 225 posted a shy advance on Wednesday, closing the day at 19.649.18, as investors were generally cautious during the first half of the day, ahead of the release of the October FOMC meeting Minutes.

The index was more active after the close, as it surged in electronic trading following a strong advance in Wall Street, and it is poised to start the day a few points below the 20,000 level.

Nikkei technical perspective

“Technically speaking the bullish potential is clear according to the daily chart, as the index has advanced further beyond its moving averages, whilst the technical indicators head strongly higher above their mid-lines”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the 20 SMA turned north below the current level, whilst the technical indicators are losing their upward strength near overbought territory, far from suggesting a bearish move ahead. Should the index extend beyond 19,942, the immediate resistance, chances of a downward move are even lower, with the index then positioned to recover the 20,000 level”.

Support levels: 19,862 19,763 19,685. Resistance levels: 19,942 20,038 20,140.
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Source:: FX Street