JPN 225 Lingers in Range
- Strategy: Prepare for a break of support
- If 16525 is broken, the next support level will be 15523
- Downward momentum is building up
Nikkei 225 remains stuck in a range between support level at 16525 and resistance level at 17438.5. Investors should be prepared for a breach of support level in the near term. After that, a new support level would come at 15523.
Downward momentum is building up hence range traders should keep their stops tight in the event of a breach out of range. If this persists until next week, chances of a break of support will increase noticeably. On the upside, resistance at 17438.5 holds firmly.
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--- Written by Nathalie Huynh, Strategist for DailyFX.com
Contact and follow Nathalie on Twitter: @nathuynh
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.