Sideways Nikkei – Quick Buying Trade! - Forex News by FX Leaders

Sideways Nikkei – Quick Buying Trade!

Posted Thursday, September 14, 2017 by
Arslan Butt • 1 min read

The market is a bit boring today due to lack of volatility and volume. It could be because of the upcoming Board of England's policy meeting, and the U.S. inflation figures which are being released today. However, we are always striving to come up with something profitable to trade. Check out our forex trading signal on Nikkei.

Nikkei – Quick Trade Setup

I was seeing the hourly time frame of Nikkei when a trade setup caught my attention.

Nikkei - Hourly Timeframe - Double Bottom Support Nikkei – Hourly Time Frame – Double Bottom Support

  • Though the Nikkei is overbought, it has competed for the 38.2% retracement at $19,785 in the hourly timeframe.
  • We can see two consecutive spinning tops above the support level which signifies the neutral intention of investors. When it's followed by the bearish trend, it means the sellers and buyers are now at the breakeven level, so the potential of reversal seems imminent.
  • The 50- periods moving average resistance is at $19,835, and crossover can lead the Nikkei higher. We also have a double bottom support at $19,775.

Nikkei – Trading Idea

Therefore, I decided to take a buying position above $19,785 with a small stop loss of $19,760 in order to target $19,835. Stay tuned as we may share more forex trading signals during the U.S. sessions.

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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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