Sell Entry In Nikkei – Double Top Pattern In Action! - Forex News by FX Leaders

Sell Entry In Nikkei – Double Top Pattern In Action!

Posted Wednesday, September 20, 2017 by
Arslan Butt • 1 min read

Yesterday, our trading signal on Nikkei floated in +60 profit, but unfortunately, the market reversed overnight to close our signal at the stop. That's why it's always recommended to move stops at breakeven once our position is in profit.

Quick Technical Outlook

On the 4- hour chart, we can see the overbought Nikkei has started coming out of the overbought zone. The triple top pattern on the daily chart is providing a solid resistance to the Japanese Stock Market Index at $20,300.

Nikkei - 4 Hour Chart - Sell Entry Nikkei – 4 Hour Chart – Sell Entry

The leading indicator RSI Nikkei is coming out of the overbought zone, and it's very likely that Nikkei will keep the bearish momentum to complete the 38.2% retracement at $20,098 in the 4-hour timeframe.

Nikkei – Trading Idea

I'm sticking with the same plan to stay in sell position below $20,275 with a stop loss above $20,350 and take profit at $20,100. We need to monitor the Federal Open Market Committee today as this may also impact the global stock markets.

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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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