Talking Points:
- Strategy: Maintain long positions with tight stops, or trade the range
- Resistance levels come at 17,438.5; 18,045.8
- Momentum is biased to the upside
Nikkei 225 pauses ahead of 50% Fibonacci and resistance level at 17,438.5 on a second day. Upward momentum signals indicate the level might be tested in the near future. Overall, the 16,525.5-17,438.5 range still contains price movement.
Traders who prefer to maintain their long positions may consider keeping stops close to the resistance level in case a downward reversal emerges. Those who are waiting to trade the range may find opportunities near the range top.
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--- Written by Nathalie Huynh, Strategist for DailyFX.com
Contact and follow Nathalie on Twitter: @nathuynh
