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
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