Tickmill

Nikkei approaching resistance, potential drop!

Short
OANDA:JP225USD   Japan 225
Nikkei is approaching our first resistance at 22497.5 (horizontal overlap resistance, 50% Fibonacci retracement , 100% Fibonacci extension ). A strong reaction might occur below this level, pushing price down to our major support at 21414.8 (horizontal swing low support, 50% Fibonacci retracement ).

Stochastic (89,5,3) is also approaching our major resistance and we might see a corresponding drop in price should it react off this level.

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This analysis is provided as general market commentary and does not constitute investment advice.
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