Talking Points:
- Strategy: Watch out for a test of the new support level at 15,523
- Nikkei index is under consistent downward pressure
- The topside of Nikkei remains limited
The Nikkei 225 finally broke through the 16,000 mark to head down toward a new support level at 15,523. The 2016’s low of 14,963 comes right below that. There are no signs of a reversal as downward momentum continued to build strongly.
Investors with short positions could consider adjusting their stop loss around one of those two support levels, in the case the index may bounce back. Those who look to buy the dips may find opportunities once the strong downturn abated, or after any repeated failures to break through support level.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Nathalie Huynh, Strategist for DailyFX.com
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