By Greg Holden – Following such erratic price movements as that seen in the last few days, we begin seeing a number of clearer technical signals. The Nikkei 225 is just one example among many where we see such data. At the moment, this CFD is trading near a highly significant support level. Should it break through, the index could free fall to as low as 10,100, the next support line below the present one. However, our technical indicators are suggesting that an upward correction may be on its way.
– The technical indicators used are the MACD/OsMA, the Relative Strength Index (RSI), and the Fibonacci Retracement lines were drawn.
– Point 1: Here we can see that the price of this index has reached a significant support line at the 23.6% level on our Fibonacci. This suggests that the pair should experience strong opposing pressure.
– Point 2: Our MACD is showing a clear, impending bullish cross, suggesting the next significant movement will likely be bullish.
– Point 3: The RSI is floating just inside the over-sold territory, highlighting the bullish pressure being placed on this index.
Nikkei 225 – 4-Hour Chart
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