Nikkei is Bullish or It’s Just a Retracement?
Dave Green • 1 min read
Today on Monday, the Global stock markets are trading sideways, despite the uncertainties prevailing in the market. While, in the previous week, U.S. indexes traded higher on profits in the financials, oil & gas, and industrials sectors. Likewise, the Asian stock markets are also trading strangly on several developments around the globe.
The Japanese stock market index, "Nikkei", rose 0.2% in the wake of solid gains on Wall Street. The Prime Minister of Japan, Mr. Shinzo Abe, will see Donald Trump, the U.S President, on 10 – 11 Feb. The agenda of the meeting is to discuss the trade and currencies.
Besides that, in the Asian trading sessions, the Nikkei is trading at 18,986.00, adding +67.80 points and +0.36% as the Japanese stock markets are also supported by improved earning reports. Particularly, the Yahoo Japan Corp. surged 70.0 points or 15.20% to trade at 530.5. On the other hand, the Nippon Suisan Kaisha, Ltd. scored 47.0 points or 8.61% to finish at 593.0 and lastly, the Nippon Electric Glass Co. added around 42.0 points or 6.42% to trade at 696.0.
Technically, the JPN225 is trading in a neutral to a slight bearish mode. As we can see in the chart, it's trading below a 61.8% Fibonacci resistance level of 19119. Moreover, the 50 period EMA, along with the RSI below 50, is also pointing towards selling trades in the Japanese Index. The Nikkei is likely to remain in selling below $19119, aiming $18824, moreover, the breakage of this level will push the index deeper towards $18640.
Lastly, I would like to recommend investors to keep their selling positions only below $19119, with a stop loss at $19156 and with an initial target of $18824.