Nikkei trading weak despite dovish comments from Fed chairman. It hit a low of 37820 at the time of writing and is currently trading around 38236.
The escalation of geo-political tension between Israel and Hamas puts pressure on the index at higher levels.
The index holds above short-term (34 and 55 EMA) and long-term moving average (200- EMA) in the 4-hour chart.
The near-term resistance is around 38500, any violation above will take the index to 39000/39335. Overall bullish continuation only above 42550.
On the lower side, immediate support stands around 37800, any breach below will drag the index down to 37200/37100.
Indicator (4- hour chart)
CCI (14)- Bearish
CCI (50)- Bullish
Average directional movement Index - Neutral
It is good to buy on dips 37500-525 with SL around 37200 for a TP of 38500/39335.
