Nikkei poised to extend losses – FXStreet

By FXStreet FXStreet (Córdoba) – The Japanese Nikkei 225 lost 3.06% or 564 points to close at 18,450.98 on Monday, extending its decline further in after hours trading, as worldwide stocks plunged. Currently poised to open Tuesday around 18,110, the Nikkei fell initially on weak Chinese manufacturing data, which triggered some risk aversion, later exacerbated by Saudi Arabia and Iran diplomatic woes.

Nikkei technical view

“The index is at its lowest since mid October, and the daily chart shows that the decline accelerated below the 100 DMA, while the technical indicators have been rejected from their mid-lines and maintain their bearish slopes, with the RSI indicator nearing oversold territory, all of which supports a continued decline for the upcoming sessions”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart the technical indicators are consolidating in extreme oversold territory, with no aims of turning higher, whilst the index is far below a bearish 20 SMA, in line with the longer term outlook”.

Support levels: 18,245 18,330 18,415. Resistance levels: 18,080 18,002 17,923.
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Source:: FX Street