Nikkei225 breaks major support 16400, decline till 16000 likely
Major support - 16414 (daily Kijun-Sen). Nikkei225 has broken major support at 16414 and declined till 16367 at the time of writing .It is currently trading around 16427. The index fell 0.84% after release of weaker than…
Nikkei225 has broken major support at 16414 and declined till 16367 at the time of writing .It is currently trading around 16427.
The index fell 0.84% after release of weaker than expected Japan Consumer prices data before market hours. Markets await clues from Fed chairman speech in Jackson hole for further direction.
Any break below 16414 (daily Kijun-Sen) will drag the index till 16200/16035. It should break below 15913 (cloud top) further weakness.Any violation below 15913 will drag the index to next immediate support 15500/15300.
Short term trend is slightly bearish as long as the index not able to close above psychological resistance 17000.
On the higher side, any break above minor resistance 16670 (daily Tenken-Sen) will take the index to next level 16800/17000 (200 day MA)/17260 (161.8% retracement of 16935 and 16408). Extreme bullishness can be seen if the index closes above 17000 (200 day MA).
It is good to sell on rallies around 16650-700 with SL 17000 for the TP of 16400/16200/16000.
