Another Ascending Triangle Pattern – the Nikkei

Written by: Dave Green • Thursday, March 23, 2017 • 1 min read

• Last updated: Thursday, March 23, 2017

Finally, the sharp bearish trend in the global stocks slows down. This may be a pause, and not an end, because I can see more room for sell-off in the equity markets.

Nikkei - Hourly Outlook

Nikkei – Hourly Outlook

Japanese stock market index, the Nikkei, is trading at $19012 after falling around -0.37%. This accompanies the S&P 500 index, which plunged to a 5 month low of 1.24%. The strong sell off began when Janet Yellen failed to present a favorable economic outlook for the U.S. This resulted in a weaker dollar, soaring safe-haven asset prices and the bearish stock markets.

The market is quite boring today due to thin volatility. As a result, the Nikkei has formed an ascending triangle pattern in the 1- hour chart. Perhaps, we need to wait for a major fundamental release to trade the breakout.

By the way, we may see some action in the early New York session. Let's keep our fingers crossed!