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28 Dec 2015
Nikkei bearish tone remains in place - FXStreet
FXStreet (Córdoba) - The Japanese Nikkei added 104 points of 0.56% on Monday, ending the day at 18,873.35 and snapping a five-session losing streak. The index bounced after Friday's losses, but trading remained choppy amid low volumes persisting throughout the financial world.
Nikkei technical perspective
“The intraday recovery was attributed to some buying interest surging on dips, although the bearish tone seen on previous updates remains in place, given that the daily chart shows that the index is currently below its moving averages, with the 100 DMA acting as a dynamic resistance around 18,890 and the technical indicators holding well below their mid-lines”, said Valeria Bednarik, chief analyst at FXStreet. “Shorter term and according to the 4 hours chart, the index presents a neutral-to-bearish stance, as it has remained capped by a horizontal 20 SMA while the technical indicators present tepid bearish slopes right below their mid-lines.”
Support levels: 18,737 18,660 18,590. Resistance levels: 18,882 18,952 19,045.
Nikkei technical perspective
“The intraday recovery was attributed to some buying interest surging on dips, although the bearish tone seen on previous updates remains in place, given that the daily chart shows that the index is currently below its moving averages, with the 100 DMA acting as a dynamic resistance around 18,890 and the technical indicators holding well below their mid-lines”, said Valeria Bednarik, chief analyst at FXStreet. “Shorter term and according to the 4 hours chart, the index presents a neutral-to-bearish stance, as it has remained capped by a horizontal 20 SMA while the technical indicators present tepid bearish slopes right below their mid-lines.”
Support levels: 18,737 18,660 18,590. Resistance levels: 18,882 18,952 19,045.