Nikkei is consolidating after more than 350 points in past two trading day. The main reason for decline was ongoing pessimism in US-China trade talks and declining US bond yield. Chinese Media reported that China is planning to cut export of rare earth minerals to US. US 10 year bond yield declined sharply and hits low of 2.20% and spread between US 3 month and 10 year yield widened to highest level since Mar 2019. The index hits low of 20728 and is currently trading around 20876.
On the higher side, near term resistance is around 21062 (100- H EMA) and any violation above will take the index to next level till 21265 (300- H EMA)/21437/21600/21830 (61.8% fib).
The near term support is around 20800 and any break below will drag the index down till 20500/20000.
It is good to sell on rallies around 21050-70 with SL around 21260 for the TP of 20530.


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