Friday, October 9, 2015

Nikkei points to a higher open

FXStreet (Córdoba) - The Nikkei 225 lost almost 1.0% on Thursday, closing the day down at 18,141.17, but recovered in electronic trading following the sharp recovery in Wall Street, aiming to open 100 points higher this Friday.

The Japanese benchmark ended a six-day straight days of gains following the release of Japan machine orders that shrank in August by 5.7%.

Nikkei technical view

"The positive tone in the index seen on previous updates is still present, despite the lack of follow through, as in the daily chart, the index is still well above its 20 SMA, whilst the Momentum indicator heads north above the 100 level, and the RSI consolidates around 51. In the shorter term, the 4 hours chart shows that the index has lost its upward strength, now barely holding above a horizontal 20 SMA, whilst the technical indicators have turned neutral, standing flat around their mid-lines”, said Valeria Bednarik, chief analyst at FXStreet. “Nevertheless, the Nikkei can extend its advance this Friday following its overseas counterparts, with the market looking for a break above 18,447 this week high, to confirm additional gains for the next week”.

The analysts sees next support levels at 18,212, 18,197 and 18,090, while she places resistances at 18,367, 18,447 and 18,530.
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