Nikkei: technicals favor a continued decline – FXStreet

By FXStreet FXStreet (Córdoba) – Asian shares tumbled, and the Japanese Nikkei fell by 3.71%, down 608 points to close Wednesday at 16,416.19 as oil fell to its lowest since 2003, on renewed fears the oil supply glut may extend all through this 2016.

Wall Street’s decline dragged the index down by 200 additional points in electronic trading, and the Nikkei traded as low as 15,937 in the US afternoon, before bouncing back towards the current 16,307 region.

Nikkei technical perspective

“The large intraday slide has left the daily indicators heading sharply lower in oversold territory, whilst the 20 SMA has fallen further well above the current level, in line with a continued decline”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the technical indicators have posted tepid bounces from oversold territory, while the 20 SMA is currently over 500 points above the current price, suggesting the index may correct higher during the next hours. Nevertheless, and considering the strong slide of US indexes, the benchmark may well turn back south from current levels, and retest the mentioned intraday low.”

Support levels: 16,232 16,117 15,991. Resistance levels: 16,392 16,408 16,511.
For more information, read our latest forex news. …read more

Source:: FX Street