Get Ready To Trade Nikkei – Symmetric Triangle Pattern
On Wednesday, the US stock markets gained support. The S&P 500 Index drove to new record high levels before the Federal Reserve policy decision today.
However, the scenario was a bit different for the Japanese Stock market index. The Nikkei faced hindrance to some extent mainly due to a drop in the crude oil prices. As we discussed in our earlier update Top 3 Things Impacting The WTI Crude Oil Today, the American Petroleum Institute (API) inventory data reported a build of 2.75 million barrels over the past week, which is significantly higher than the previous week's draw of 4.6 million barrels.
The build in crude oil inventories demonstrates a weaker demand for oil in the industry. Weaker demand means there are fewer production activities going on in the corporate section. This signals that sales are likely to drop along with the revenues. Consequently, investors choose to stay out of the market.
Nikkei – Hourly Chart – Symmetric Triangle Pattern
Technically, the index has formed a symmetric triangle pattern which is extending a support to $19850 and a resistance at $20015.
Forex Trading Signal – Idea
At this point, the idea is to have a buy position above $20040 with a target of $20120 & $20200. On the other hand, below $19850, the target is likely to be $19780.
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