Trade Setup: Nikkei Offering Opportunity

While equity markets have rallied strongly, the Nikkei has been behaving itself. The Japanese Index is stuck in a tight range between 20420 resistance and 20255 support. While the range certainly can’t last forever I think it still offers more opportunity.

Overall I feel that we are clearly overbought and I expect a slight correction in the coming days. That said markets have a habit of drifting higher and crushing volatility.

I’m happy to sell at the 20420 level for a short-term trade, however, keep those stops tight as we still have the potential to break out higher.

Nikkei – 240 min Chart.

ABOUT THE AUTHOR See More

Rowan Crosby

Asia-Pacific Analyst

Rowan Crosby is a professional futures trader from Sydney, Australia. Rowan has extensive experience trading commodities, bonds and equity futures in the Asian, European and US markets. Rowan holds a Bachelor of Finance and Economics degree and is focused heavily on Investment Finance and Quantitative Analysis.

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