Thursday, October 22, 2015

Nikkei 225 bounces off lows, bullish structure intact

FXStreet (Bali) - The benchmark Japanese index Nikkei 225 is trading on a soft tone in early trade, and despite coming well off its lows in the initial 10m, still operates over 0.15% lower vs Wednesday's close.

The lackluster performance in the Nikkei 225 early doors, even if the underlying bullish structure remains intact, follows the negative sentiment exhibited in US equities, where the S&P500 closes down by 0.58% at 2,018.9, with healthcare and biotech the worst performers.

From a technical perspective, despite the negative open, the index has been able to rebound off a critical resistance-turned-support at 18,435/40 (tested multiple times as noted yday), suggesting that buying interest remains for a potential bullish extension towards recent highs near 18,600/610. A break above this layer of resistance would then expose 18,750.00 ahead of 19,000 round number. On the downside, setbacks below 18,435/40 may see 18,240/50 retested.
For more information, read our latest forex news.

No comments:

Post a Comment