We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Mixed
GBP/USD
Mixed
USD/JPY
Mixed
Gold
Bearish
Oil - US Crude
Mixed
Bitcoin
Mixed
More View more
Real Time News
  • Australia’s ANZ Roy Morgan Weekly Consumer Confidence Index (OCT 20) Actual:111.6 Est: N/A Previous: 110.9 #AUD
  • $USDCAD has continued its Q4 retreat, pushing down to fresh two-month-lows with the yearly-low now very nearby. Get your USD/CAD technical analysis from @JStanleyFX here: https://t.co/tNd9qQlB2k https://t.co/hRIzBLcXhs
  • Heads up: Australia’s ANZ Roy Morgan Weekly Consumer Confidence Index (OCT 20) is due at 22:30 GMT (15 min) Est: N/A Previous: 110.9 #AUD
  • RT @Reuters: Chile's Larrain says civil unrest will 'undoubtedly' have an impact on the economy https://t.co/GeYoPAR5dx https://t.co/UL9mkn…
  • Natural gas: A close below the low end of the zone could send the price towards $2.210. Get your technical analysis from @malkudsi here:https://t.co/ag5AG4lm4p https://t.co/l4yiQjELNs
  • Global (finance/market focused) search interest for the top 3 fundamental themes I've been tracking recently: "recession", "negative rates" and "trade war" https://t.co/2DxifuWFra
  • 💵 $USD Price Outlook - via @DailyFX The latest US Dollar Price Volatility Report discusses firming Fed rate cut expectations and rising liquidity amid ongoing repo market mania. Link to Full Analysis: https://www.dailyfx.com/forex/fundamental/us_dollar_index/usd_trading_today/2019/10/21/us-dollar-price-volatility-report-dovish-fed-bets-firm-liquidity-up.html https://t.co/LMQktoht1J
  • Forex Update: As of 20:00, these are your best and worst performers based on the London trading schedule: 🇨🇦CAD: 0.29% 🇳🇿NZD: 0.28% 🇦🇺AUD: 0.16% 🇨🇭CHF: -0.17% 🇪🇺EUR: -0.19% 🇯🇵JPY: -0.19% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/fireEbOHko
  • The #Dow Jones is less than 600 points beneath all-time highs and enjoys nearby technical support. Get your market update from @PeterHanksFX here: https://t.co/jwRttukai5 https://t.co/BRlWozNdN2
  • Retail FX traders have pushed their short $GBPUSD interest to the highest in over a year. I think the contrarian appetite for quick reversal is overpowering the effort to better understand a convoluted Brexit situation... https://t.co/qXdSZSg0AZ
Nikkei 225 Technical Analysis: Bulls Must Push Higher To Convince

Nikkei 225 Technical Analysis: Bulls Must Push Higher To Convince

2018-08-30 03:30:00
David Cottle, Analyst
Share:

Nikkei 225 Technical Analysis Talking Points:

  • The index has staged an impressive rally, back up to January’s highs
  • However the bulls have failed to nail these gains down
  • They are running out of time to do so.

Get trading hints and join our analysts for interactive live coverage of all major economic data at the DailyFX Webinars.

The Nikkei 225 has taken its impressive rally one stage further this week, and broken back upward to peaks investors won’t have seen since January of this year.

Nikkei 225 Technical Analysis: Bulls Must Push Higher To Convince

Still, close in a little more narrowly on the Tokyo stock benchmark’s daily chart and those gains look a little less safe. At the time of writing (0300 GMT Thursday), the index is below resistance levels generated by the peaks of May, June and July. It had topped all of these in the past week, but needs some daily and, ideally weekly closes above them to make them stick. And we haven’t seen them yet.

Nikkei 225 Technical Analysis: Bulls Must Push Higher To Convince

As the chart above shows, this market is only just below that key resistance zone at present, so the next couple of days’ trading action could be very interesting. If the bulls cannot manage closes within that band and, ideally, above it, then the rally we have seen since mid August will be in danger of losing steam.

Should that be the case then a similar band of daily open and closing support from mid-July to early August will probably come into focus to the downside. It lies between 22687 and 22488. As long as the index remains above these levels then bulls can probably still hope for more gains.

However a slide below it could put all the recent rise into doubt make another trip down to the 21900 lows at which that rise began all too probable.

In short, this week’s closes could offer investors some powerful short-term directional clues.

Resources for Traders

Whether you’re new to trading or an old hand DailyFX has plenty of resources to help you. There’s our trading sentiment indicator which shows you live how IG clients are positioned right now. We also hold educational and analytical webinars and offer trading guides, with one specifically aimed at those new to foreign exchange markets. There’s also a Bitcoin guide. Be sure to make the most of them all. They were written by our seasoned trading experts and they’re all free.

--- Written by David Cottle, DailyFX Research

Follow David on Twitter@DavidCottleFX or use the Comments section below to get in touch!

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.