Nikkei 225 Contests the 16,000 Mark
- Strategy: Prepare for a rebound if 16,000 is broken
- Strong upward momentum has returned
- A breach of 16,000 would open up the topside toward the 16461.5 resistance level
The Nikkei 225 is heading to test the 16,000 mark which has capped daily price action in the last four sessions. Strong upward momentum indicates good chances of a breach, upon which the Nikkei would find leeway to head up to a previous resistance level at 16,461.5.
Investors with either long or short positions may adjust their stop loss around the 16,000 level in preparation for a breach or failure to breach. Those expecting higher moves may find a strong resistance level at 16,461.5 even if the index successfully climbs over the big figure. On the downside, the 15,523 level remains a strong support.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Nathalie Huynh, Strategist for DailyFX.com
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.