28 Apr 2016
Nikkei: technical stance is bullish - FXStreet
Asian shares closed in the red, with the Japanese Nikkei down by 62 points on Wednesday to end at 17,290.49, as Apple-related shares took a beating and disappointing corporate earnings, after the company reported its first-ever decline in iPhone sales.
Nevertheless, the index recovered some ground in after-hours trading, tracking the late Wall Street bounced triggered by the US Federal Reserve, as the American Central Bank failed to convince investors over the strength of the local economy, and therefore maintains a possible rate hike away in the future.
Nikkei technical perspective
“The Nikkei stands pretty much unchanged from its previous close, and the technical stance is bullish, given that in the daily chart, the index bounced sharply for a second consecutive day from its 100 DMA, whilst the Momentum indicator heads north, despite being in overbought territory, and the RSI indicator also heads higher around 62,” said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the index presents a neutral stance, as the technical indicators head nowhere around their mid-lines, whilst it stands a few points above a horizontal 20 SMA.”
Support levels: 17,420 17,332 17,212. Resistance levels: 17,507 17,587 17,692.
Nevertheless, the index recovered some ground in after-hours trading, tracking the late Wall Street bounced triggered by the US Federal Reserve, as the American Central Bank failed to convince investors over the strength of the local economy, and therefore maintains a possible rate hike away in the future.
Nikkei technical perspective
“The Nikkei stands pretty much unchanged from its previous close, and the technical stance is bullish, given that in the daily chart, the index bounced sharply for a second consecutive day from its 100 DMA, whilst the Momentum indicator heads north, despite being in overbought territory, and the RSI indicator also heads higher around 62,” said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the index presents a neutral stance, as the technical indicators head nowhere around their mid-lines, whilst it stands a few points above a horizontal 20 SMA.”
Support levels: 17,420 17,332 17,212. Resistance levels: 17,507 17,587 17,692.