Nikkei maintains strong negative tone – FXStreet

By FXStreet FXStreet (Córdoba) – The Nikkei 225 remained closed due to a local holiday, although the index fell sharply in electronic trading, following China’s stocks in their way south, and European markets that also posted losses.

The latest registered close for the Japanese benchmark was at 17,697.96 and is currently poised to open around 17,420, recovering some ground as Wall Street turned green, right before the close.

Nikkei technical view

“Nevertheless, the index maintains a strong negative tone as in the daily chart, it has set a lower low and a lower high, whilst extending further below its moving averages. In the same chart, the technical indicators are posting tepid bounces from oversold territory, but still far from confirming a stepper recovery”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the index remains well below a bearish 20 SMA, while the Momentum indicator turned lower below its 100 level, and he RSI indicator heads higher around 39, maintaining the risk towards the downside, should the index remain capped below 17,535, the intraday high”.

Support levels: 17,315 17,263 17,182. Resistance levels: 17,415 17,535 17,609.
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Source:: FX Street