Nikkei 225 Technical Analysis: Former Support Could Cap Gains
- Nikkei 225 is currently below the 16,000 handle
- Prior low at 15,800 seems to have stalled downside momentum
- Long term range lows may be at risk on further downside conviction
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The Nikkei 225 is trading below the 16,000 handle at the time of writing, after the index managed to break the level and a rising trend line two days ago.
The break below 16,000 seemed to have put the spotlight again on a prior low at around 15,800, as the level appears to be acting as support again, stalling further downside momentum for the moment. A move below might put the focus on the 15,380 support followed by a longer term range bottom around 15,000.
The index seems to test the trend line and the 16,000 level for resistance. If price can manage a break above, levels of interest could be the 16,500 level on a “support turned resistance” basis, followed by the 16,776 level and the 17,000 handle, with the big range resistance zone at around 17,650 lurking at the top.
Nikkei 225 Daily Chart: June 15, 2016
--- Written by Oded Shimoni, Junior Currency Analyst for DailyFX.com
To contact Oded Shimoni, e-mail firstname.lastname@example.org
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.