Quick Trade Setup in Nikkei – Triangle Pattern! - Forex News by FX Leaders

Quick Trade Setup in Nikkei – Triangle Pattern!

Posted Monday, October 2, 2017 by
Arslan Butt • 1 min read

It's been some time, we haven't been able to capture any trade on the Japanese Index Nikkei. But today, I'm seeing a hot trade setup which is worth the risk.

Did you hear news about the Las Vegas Strip shooting? It's bit threatening and any sort of event like this put's the pressure on global stock market indices.

Technical Outlook

On the 4-hour chart, we can see the overbought Nikkei has started coming out of the overbought zone. It's testing the $20,450 for the third time now, making this level a triple top pattern. Below this, the Japanese Index can lead towards $20,300.

Nikkei - Hourly Chart - Ascending Triangle PatternNikkei – Hourly Chart – Ascending Triangle Pattern

As per the RSI & Stochastics, Nikkei is coming out of the overbought zone, and it's very likely to continue a bearish trend to stay in the range $20,300 – $20,450.

Nikkei – Trading Idea

The idea is to stay in sell position below $20,450 with a stop loss above $20,550 and take profit at $20,350. Good luck fellows, make sure to follow the FX Leader's Money Management Strategy to ensure profitability.

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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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