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26 Apr 2016
Nikkei poised to open the day near 17,500
The Nikkei edged lower, shedding 85 points to close the day at 17,353.28 on Tuesday, weighed by a firmer yen and plummeting auto-makers shares, following news that Mitsubishi reckoned that it used fuel economy testing methods that did not comply with Japanese regulations for 25 years, which sent the firm’s stock down 9.6%.
Nikkei technical perspective
“The benchmark recovered in after-hours trading and is poised to open the day near 17,500, maintaining a positive tone in its daily chart, as buying interest surged on a test of the 100 DMA, whilst the RSI indicator has stalled its decline within bullish territory after correcting extreme overbought readings. In the same chart, the Momentum indicator consolidates in overbought territory, far from suggesting a downward upcoming move,” said Valeria Bednarik, chief analyst at FXStreet. “Shorter term, the 4 hours chart shows that the index is a few points above its 20 SMA, whilst the technical indicators have lost upward momentum and hover around their mid-lines, but overall suggesting the downside remains limited.”
Support levels: 17,420 17,332 17,212. Resistance levels: 17,507 17,587 17,692.
Nikkei technical perspective
“The benchmark recovered in after-hours trading and is poised to open the day near 17,500, maintaining a positive tone in its daily chart, as buying interest surged on a test of the 100 DMA, whilst the RSI indicator has stalled its decline within bullish territory after correcting extreme overbought readings. In the same chart, the Momentum indicator consolidates in overbought territory, far from suggesting a downward upcoming move,” said Valeria Bednarik, chief analyst at FXStreet. “Shorter term, the 4 hours chart shows that the index is a few points above its 20 SMA, whilst the technical indicators have lost upward momentum and hover around their mid-lines, but overall suggesting the downside remains limited.”
Support levels: 17,420 17,332 17,212. Resistance levels: 17,507 17,587 17,692.