Nikkei still bearish below 19,021 – FXStreet

By FXStreet FXStreet (Córdoba) – The Nikkei lost 312 points and ended Tuesday at 18,565.90, its lowest close in over 7 weeks. The index however, surged sharply in electronic trading as a recovery in oil prices sent European and US stocks skyrocketing ahead of the Federal Reserve monetary policy decision.

Nikkei technical perspective

“Currently poised to open the day near 18,900, the daily chart shows that the recovery stalled short from a still bearish 100 DMA, now the immediate resistance at 19,021. In the same chart, the RSI indicator is bouncing from near oversold levels, while the Momentum indicator has lost its bearish potential, but both remain well below their mid-lines and far from indicating additional gains”, said Valeria Bednarik, chief analyst at FXStreet. “Shorter term, the 4 hours chart shows that the index is barely holding above a bearish 20 SMA, whilst the Momentum indicator heads higher above its 100 level, and the RSI turned lower and stands now around 46, also failing to confirm further gains, as long as the mentioned resistance holds.”

Support levels: 18,842 18,752 18,640. Resistance levels: 19,021 19,098 10,175.
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Source:: FX Street