Hello Traders,
just a quick look at Nikkei225 Index!
On a daily basis, you will observe the weakness of the Index, declining to 20749 after making a high @ 24115.94 on January 17!
The decline that followed that high, was persistently moving within the Donchian channel and could now find support at the lower boundary of the channel, after N225 closed an open gap of the trading on September 4-5, 2019!
From a technical view, you will notice that RSI (14) has dropped to the oversold area (below 30) and could reverse from this level to another leg of advance.
If so to come, N225 could reverse to the middle line of the DC what is at 22304 by the end of this week. Notice the open gap`s left by trading from Thursday to Friday (21329-21009)!
For the bullish view, and so a possible countertrend, it is important, that the low @ 20613 and 20110 (August 6, 2019) are still valid! Any drop and close below the latter level would imply more bearish trouble to come and need an adjustment of the count.
Have a great weekend....
ruebennase
Feel free to ask or comment.
Trading this analysis is at your own risk!
just a quick look at Nikkei225 Index!
On a daily basis, you will observe the weakness of the Index, declining to 20749 after making a high @ 24115.94 on January 17!
The decline that followed that high, was persistently moving within the Donchian channel and could now find support at the lower boundary of the channel, after N225 closed an open gap of the trading on September 4-5, 2019!
From a technical view, you will notice that RSI (14) has dropped to the oversold area (below 30) and could reverse from this level to another leg of advance.
If so to come, N225 could reverse to the middle line of the DC what is at 22304 by the end of this week. Notice the open gap`s left by trading from Thursday to Friday (21329-21009)!
For the bullish view, and so a possible countertrend, it is important, that the low @ 20613 and 20110 (August 6, 2019) are still valid! Any drop and close below the latter level would imply more bearish trouble to come and need an adjustment of the count.
Have a great weekend....
ruebennase
Feel free to ask or comment.
Trading this analysis is at your own risk!