Skip to main content

Japan Nikkei 225 Experiencing Further Downward Bias


Nikkei 225 Index is expected to re-test its distribution range low at 20,400 level. The level is also a previous support level.

 Supporting Claim for Downward Bias: 
- Index Broke below its Uptrend Line (stride) 
- Uptrend line has turned into resistance for index ( Bearish ) 
- Experienced 2x Upthrust (Failure to maintain new high). This potentially means that smart money is distributing at premium levels as "Breakout" traders buy in strength.

 20,400 Level Objective based on: 
- Previous support established in Mar 2018 
- Fibo 1.618% projection 

 If Nikkei 225 Breaks Below 20,400 Level: 
- Distribution Phase is deemed established and index will enter into MARK DOWN phase 
- Next objective will be 19,000 level. 

 Having a Wyckoff Price Cycle concept in mind helps traders see the market from a structured prospective. 

 Join us in our Upcoming Class in conjunction with SGX Academy, to learn the Richard Wyckoff principles, analysing and trading in harmony with the markets and smart money.
Tags

Most Popular

DBS Group Holdings (D05): Upward Move Expectations

  DBS Group Holdings (D05) Upward Move Expectations Technically, price trading above 36.58, could see DBS Group retest  previous high of 38.55. Both Relative Strength and momentum indicator FFI are supportive of the move. Stop below 35.42 Disclaimers apply
Read more

BYD Co (1211:HK) Witnessing Signs of Strength

BYD Co (1211:HK) Witnessing Signs of Strength On Friday, we observed strong buying within a wide trading range, with the stock closing near the day’s high and good volume recorded. The previous two days of selling showed relatively low volume, indicating potential supply exhaustion. The stock price is currently at a key resistance level, constrained by a downward trendline and a horizontal support-turned-resistance line. A breakout above this level could signal a potential trend reversal , with an initial technical price target of HK$300.00. The stock is outperforming the broader market, indicating strong market demand, as evidenced by our proprietary Relative Strength Indicator (RSI), which is above zero. Additionally, the volume momentum indicator (FFI) is improving, further supporting the possibility of supply exhaustion. The Stochastic indicator also continues to trend higher, reinforcing a bullish outlook. A stop-loss price is set below HK$248.40 . If the price falls below this l...
Read more

Week Ahead: Trump Trade and the Resilient US Economy

  Week Ahead, 9 Dec 2024 Macro News: U.S. markets continued their record-breaking streak this week following a reassuring speech by U.S. Federal Reserve Chair Jerome Powell, highlighting Fed's cautious yet comfortable stance on rate cuts. Beneficiaries of the "Trump Trade" also saw significant gains, with Tesla Inc. rising by +12.77% and Bitcoin up +2.24% for the week. The U.S. technology sector, represented by the QQQ ETF, also performed strongly, boosted by Friday's jobs report, which indicated a resilient economy. Meanwhile, the Hang Seng Index (2800 ETF) experienced a technical turnaround, gaining +2.28% this week. The rally was fuelled by speculation that Beijing might introduce additional lending and mortgage rate cuts to stimulate the economy. Medium Term: • S&P 500 (SPX): Index remains above the 6,000 level and could trend towards the 6,180 zone. • Straits Times Index (STI): STI reversed near our 3,860 resistance zone. We are neutral and is looking out for...
Read more