Morning Preview: Double Top in the Nikkei as Equities Slow Down - Forex News by FX Leaders

Morning Preview: Double Top in the Nikkei as Equities Slow Down

Posted Monday, October 9, 2017 by
Rowan Crosby • 1 min read

The markets had a quiet start to the week on Monday with S&P 500 starting to slow down after what has been a massive run-up over the last month. Here at FX Leaders we’ve been talking in depth about the raging bull market and have been taking a close look at other worldwide markets such as the German Dax and Japanese Nikkei. All around it’s fair to say that equities are overvalued and it’s just a matter of when they re likely to crack.

 

Nikkei Topping Out?

The Japanese market has been incredibly strong, after looking like it was about to crack the lows not all that long ago. In Monday trade it looked like we have put in a bit of a double top.

It’s never easy to pick a top, so what I’m looking for is confirmation of a move lower. The key level for me is 20600. If we can break below that level then there’s the potential for another leg lower.

 

Nikkei – 240 min Chart.

 

Key Support and Resistance Levels

Support

Resistance

20647

20373

20600

20754

20430

20800

 

Top Economic Data

It’s a quiet day on the data front in terms of top-tier data. The only major announcement for the day is UK Manufacturing Production due out at 8:30 GMT.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies

About the author

Rowan Crosby // Asia-Pacific Analyst
Rowan Crosby is a professional futures trader from Sydney, Australia. Rowan has extensive experience trading commodities, bonds and equity futures in the Asian, European and US markets. Rowan holds a Bachelor of Finance and Economics degree and is focused heavily on Investment Finance and Quantitative Analysis.
Related Articles
Questa settimana potrebbe essere una delle più esplosive dell'anno in quanto le banche centrali del mondo si stanno preparando a scuotere i mercati.
SPONSORED
Comments

Leave a Reply

avatar
  Subscribe  
Notify of