Nikkei 225 – Extended bears eye Fibo support at 21762

Slobodan Drvenica Windsor Brokers

NIKKEI 225

Nikkei is sharply lower on Wednesday, extending pullback from new multi-year high at 23420 into fifth straight day. Bearish acceleration through strong support at 22035 (daily Kijun-sen) and psychological 22000 support pressures next pivotal point at 21762 (Fibo 38.2% of 19080/23420 ascend) and would generate strong bearish signal on break. Negative sentiment that extended from the Wall St on Tuesday persists and could drive the price further down. Falling daily RSI is currently at the mid-point and shows plenty of room at the downside, however, bears may take a breather as strongly oversold slow stochastic warns of correction, but so far without firmer signal. Bears could travel to 21250 (50% of 19080/23420) on sustained break below 21762 trigger. Broken 20SMA marks solid resistance at 22125, ahead of session high at 22320 and south-turning 10SMA (2250), which is expected to cap extended upticks.

Res: 22000; 22125; 22320; 22500
Sup: 21830; 21762; 21585; 21250

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

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