3 May 2016
Nikkei: technicals favour the downside - FXStreet
Asian shares closed mostly higher on Tuesday, fueled by RBA's decision to cut its main benchmark and despite China's Caixin Manufacturing PMI weakened to 49.4 in May from 49.7 in April, below market expectations.
Japanese markets were closed in observance of the Constitution Day, the first day of three in this Golden Week.In futures trading, however, the benchmark closed the day in the red around 15,937.
Nikkei technical view
“The daily chart shows that the technical indicators are biased lower within bearish territory, whilst the index remains well below its moving averages, supporting some further, but tepid declines,” said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the 20 SMA approached current levels and currently stands at 16,057, while the RSI indicator continues consolidating in oversold territory, and the Momentum indicator turned flat right below the 100 level, all of which maintains the risk towards the downside.”
Support levels: 15,907 15,812 15,755. Resistance levels: 15,968 16,057 16,115.
Japanese markets were closed in observance of the Constitution Day, the first day of three in this Golden Week.In futures trading, however, the benchmark closed the day in the red around 15,937.
Nikkei technical view
“The daily chart shows that the technical indicators are biased lower within bearish territory, whilst the index remains well below its moving averages, supporting some further, but tepid declines,” said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the 20 SMA approached current levels and currently stands at 16,057, while the RSI indicator continues consolidating in oversold territory, and the Momentum indicator turned flat right below the 100 level, all of which maintains the risk towards the downside.”
Support levels: 15,907 15,812 15,755. Resistance levels: 15,968 16,057 16,115.