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25 Jul 2014
Nikkei 225 setting up for a break higher - 2ndSkies
FXStreet (Bali) - According to Chris Capre, Founder at 2ndSkies Forex, the Nikkei 225 appears to be setting up for a potential break higher.
Key Quotes
"While most European indices are still struggling with the political situation in Ukraine, the Nikkei has been consistently building and is forming a price action squeeze on the 4 hour chart."
"Notice how the resistance level has remained stable and held the last three attempts, but that the overall lows continue to build."
"This suggests the overall price action context supports the bulls, who are consistently buying dips, while the bears have to remain at the same place just to hold their line."
"Overall, this favors the bulls and is hinting at a potential upside breakout in the near future.
"For now, look for bears to step in one last time at the key resistance level at 15470, perhaps offering a short term selling opportunity. But look to pick up the index on dips near 15200, 15275 and 15325 for an eventual breakout."
Key Quotes
"While most European indices are still struggling with the political situation in Ukraine, the Nikkei has been consistently building and is forming a price action squeeze on the 4 hour chart."
"Notice how the resistance level has remained stable and held the last three attempts, but that the overall lows continue to build."
"This suggests the overall price action context supports the bulls, who are consistently buying dips, while the bears have to remain at the same place just to hold their line."
"Overall, this favors the bulls and is hinting at a potential upside breakout in the near future.
"For now, look for bears to step in one last time at the key resistance level at 15470, perhaps offering a short term selling opportunity. But look to pick up the index on dips near 15200, 15275 and 15325 for an eventual breakout."