Nikkei Struggling At Key Resistance as Revised Coronavirus Data

Optimism crept back into the market earlier this week, with market participants speculating that cases of 2019-nCoV may peak by the end of February.

However, a revision of the counting methods used to identify infections led to a 15,000 case jump in the Hubei province; with the WHO stating many of these cases date back up to three weeks.

This has seen doubt creep back into the market with the Nikkei FOREXCOM:JPXJPY pegging back most of its gains from earlier in the week, after failing to break key resistance at the 24000 handle.

Early formation of a shooting star candle, a potential triple-top reversal pattern and RSI divergence highlights exhaustion in the recent uptrend from late August 2019, and could see price begin to pull back to retest the 2020-low (22637) and 38.2% Fibonacci (22525).

Break of support & sustained momentum to the downside could see price push towards significant uptrend support ,extending back to June 2016, and confluence with the 61.8% Fibonacci (21509). FOREXCOM:JPXJPY

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.