Nikkei: Potential pull back towards the 1D MA200.
Nikkei has been on a strong 1D uptrend since the August rebound on the 20,115 1W Support and just recently 1D turned neutral (STOCHRSI = 53.869, ADX = 18.607, Highs/Lows = 0.0000) showing possible signs of exhaustion.
The 1D RSI is on a bearish channel, diverging from the price action and that could be a first sign of a short term trend change.
We have traced this behavior back on the last time NI225 had a Golden Cross bull run of a similar pattern and that was in late 2016 - early 2017. After the bull run took a pause on January 2017, the RSI also printed a bearish divergence and the index consolidated for roughly 2.5 months before pulling back towards the 1D MA200. That was the first important test of that uptrend and was successful as the price rebounded on the 1D MA200 which acted as a Support all the way until the January 2018 High.
We are expecting a similar behavior this time also and advice investors to wait for a pull back near the 1D MA200 before buying again and target the 24,450 1M Resistance.
We want to point out at this stage that Nikkei's horizontal levels have been working well enough on the long term and this is what helped us buy the pull backs on the Support Zones before, as you see on the chart below:
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The 1D RSI is on a bearish channel, diverging from the price action and that could be a first sign of a short term trend change.
We have traced this behavior back on the last time NI225 had a Golden Cross bull run of a similar pattern and that was in late 2016 - early 2017. After the bull run took a pause on January 2017, the RSI also printed a bearish divergence and the index consolidated for roughly 2.5 months before pulling back towards the 1D MA200. That was the first important test of that uptrend and was successful as the price rebounded on the 1D MA200 which acted as a Support all the way until the January 2018 High.
We are expecting a similar behavior this time also and advice investors to wait for a pull back near the 1D MA200 before buying again and target the 24,450 1M Resistance.
We want to point out at this stage that Nikkei's horizontal levels have been working well enough on the long term and this is what helped us buy the pull backs on the Support Zones before, as you see on the chart below:
** If you like our free content follow our profile (www.tradingview.com/u/InvestingScope) to get more daily ideas. **
Comments and likes are greatly appreciated.
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Over 65% accuracy on Private Signals Channel.
Over 15% return monthly on our Account Management Plan.
Account RECOVERY services.
Free Channel: t.me/investingscopeofficial