Nikkei looks to be on a desceding trend on the hourly chart. As we can see it broke downwards it's ascending trend and continued it's global image searching for lower lows, as it broke downwards an ascending trend developed in the daily chart.
What we're looking here is that price has respected it's current trendline and failed to breakout ema's 50 giving out a tiring candle signal, that's the first bell indicating that a reversal is likely.
According to it's current trend searching for lower lows, the price may search for a lower low around the orange indicated section as it is an important support, which is also close to fibbonaci's level 1.272 coming from the downward breakout from the previous uptrend.
I'll operate this trade once the candle in the hourly chart closes red or giving a japanese pattern of reversal.
What we're looking here is that price has respected it's current trendline and failed to breakout ema's 50 giving out a tiring candle signal, that's the first bell indicating that a reversal is likely.
According to it's current trend searching for lower lows, the price may search for a lower low around the orange indicated section as it is an important support, which is also close to fibbonaci's level 1.272 coming from the downward breakout from the previous uptrend.
I'll operate this trade once the candle in the hourly chart closes red or giving a japanese pattern of reversal.
Trade closed: stop reached