Major support - 20700
Nikkei has shown good recovery of more than 700 points in the past 5 trading days following the footsteps of Wall Street. The jump was due to positive comments from the White House economic adviser Larry Kudlow on the US-China trade deal. He said that we strongly hope that the trade deal will happen soon and China will start buying agricultural products from the US. It hits a high of 21730 and is currently trading around 21705.
US Market- The Wall Street has closed marginally higher with Dow Jones and S&P500 at 27349 (0.65%) and 3005 (0.68%).
Japanese Yen- USDJPY has halted its 3 days of the uptrend and showing minor weakness. It is trading well below 109 and any major trend reversal will happen only above that level. It is currently trading around 108.12.
Shanghai composite- Shanghai has almost formed a double bottom around 2880 and shown a minor jump. Any major jump can be seen only above 2967. It is currently trading around 2921.
Technically Nikkei facing strong resistance around 21700 and any major jump can be seen only if it closes above this level. Any close above targets 22000/22280.
On the flip side, near term support is around 21500 and any violation below this level will take the index till 21315/21000.
It is good to buy on dips around 21500 with SL around 21300 for the TP of 22000.
