Nikkei declined more than 500 points from high of 22947 after Trump’s tweeted on China tariff. US President threatened to impose more tariffs on China and said that US would raise import tariff taxes on $200 billion from 10% to 25%. Shanghai composite lost more than 5% after the tweet. Nikkei hits low of 21922 and is currently trading around 21932.
On the lower side, near term support is around 21830 (55- day EMA) and any break below will drag the index till 21627 (300- day EMA)/21500.
The near term resistance is around 22230 and any break above will target 22492.
It is good to buy on dips around 21650-700 with SL around 22000/22230.
