Nikkei Slips Below Support – Is this because of Trump?
Arslan Butt • 1 min read
Despite the muted impact from the latest BOJ summary of opinions, the Japanese Index Nikkei dipped to trade at $18945 due to global forces. Today in the early Asian trading session, the Nikkei index opened with a huge gap at $19097 after closing at $19222 on Friday.
As we discussed in our live market update, Three Major Reasons for a Bullish Gold, the weak dollar prices are hurting the U.S stocks. We already know that the Nikkei follows the DJIA in determining future trends.
In addition to this, global stocks have been impacted by the defeat of the U.S President Donald Trump's healthcare legislation. The dip in U.S stock markets is seen in the Japanese stock market index.
Nikkei Hourly Chart
Looking at the 1 – hour timeframe, we can see a strong double bottom pattern which is providing a support to Nikkei at $18901. The RSI is holding 30, whereas the stochastic is below 20. An index has formed a test bar right above the major support level giving us a buy signal.
Trading Signal: We can take up a buying position around $19000 with a stop loss below $18825 and a take profit at $19050. Fellows, trail your stop loss at breakeven once the markets come into profit.