Bull vs. Bear, the Nikkei Has Yet to Decide!
Dave Green • 1 min read
Today on 9th Feb, the global stock market indices are trading muted in the absence of any major economic event in the market. The U.S stock market remained mostly unchanged in the early trading sessions, with regard to earnings reports that are yet to be release.
However, Nikkei, the Japanese stock market index, is trading slightly bearish at $18,907.67, falling -99.93 points and -0.53% in the Asian trading sessions. The bearish momentum was initiated by the as losses in the Chemical, Plastic, Petroleum and Steel sectors.
In addition, the investors are still facing anxiety as they are looking to U.S President, Donald Trump, for more details on his promises of tax reform, infrastructure spending, as well as trade policies.
Besides the fundamentals, let's talk about a technical view of the Japanese index. The Nikkei is consolidating in a narrow range of $18945 – $18894 and it has formed an asymmetric triangle pattern in the 1- hour timeframe, demonstrating a perfect breakout trading setup. Moreover, the RSI is neutral as it's holding exactly at 50, along with the moving averages, that are also clueless about the further trends of the Nikkei.
At the moment, I would recommend investors to wait for the clear trend in the Japanese index. However, if necessary, the investors can take benefit of a choppy trading in a narrow range of $18974 – $l8894. Besides that, the rule of choppy trading is to follow tight money management strategy and close stop losses.