Nikkei 225 Technical Analysis: Oct Falls Threaten 2-Yr Uptrend

Nikkei 225 Technical Analysis Talking Points:

  • The Nikkei 225 has retreated very sharply from its recent 27-year highs
  • An old trading range seems to have reasserted itself
  • But even that is now under threat

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A collapse in global risk appetite fueled largely by trade war worries has seen most major stock indexes under pressure and the Nikkei 225 is no exception.

Indeed the Japanese blue-chip benchmark has shed just a little less than 2,500 points in October, retreating sharply from the 27-year peaks hit earlier in the month.

Technically speaking the index has now fallen back in to the extremely broad 23,170-21,520 range which had contained trade since mid May, with the exception of September and October’s impressive run higher.

Range Base Gets Close: Nikkei 225 Daily Chart

The index has almost reached the bottom of that range on an intraday basis but so far it has held, both in that sense and intraday. Should it break however, there is

Article source: https://www.dailyfx.com/forex/technical/home/analysis/jpn225/2018/10/25/Nikkei-225-Technical-Analysis.html