Nikkei 225 Technical Analysis: Index Wilts Toward Key Chart Prop

Nikkei 225 Technical Analysis Talking Points:

  • The Nikkei 225 remains under some bear pressure
  • There’s little sign of a sustainable fightback at current levels
  • A key support zone is getting close

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The Nikkei 225’s daily technical chart looks a little worrying for the bulls at this point. The Tokyo blue-chip benchmark broke below its dominant uptrend channel at the end of last week and has faded further away from it in the sessions since.

Fundamentally speaking this down-move has been far from unique to the Nikkei. A new wave of risk aversion has rippled across the world’s financial markets. Trade worries, collapsing oil prices, growth fears and jitters in Europe related to both Brexit and Italy’s budgetary standoff with the European Union were never going to make a very equity-supportive cocktail.

Technically the Nikkei’s bounce faded out on in the 22,540 region last Wednesday, well short of the previous significant peak. That was the 22,950 hit on October 17. Had the bulls been able to retake that region

Article source: https://www.dailyfx.com/forex/technical/home/analysis/jpn225/2018/11/15/Nikkei-225-Technical-Analysis-Index-Wilts-Toward-Key-Chart-Prop.html