Nikkei is grinding upwards in calm Monday trading, extending bullish reversal. The 19 February Nikkei Technical Outlook also reveals that bearish reversal risk remains strong following February decline.
19 February, GKFX – The Nikkei Index is back over the 22,000.00 handle to kick off the new week, pushing over the 21,100.00 handle as of writing.
Japan’s leading stock index took a tumble beginning in late January following a risk aversion flared up as inflation threatens to cause central banks around the globe to begin tapering their easy monetary policies and programs, ending the decade of easy money access for equity markets.
Equities seem to have finished pricing in the risk factor of rising interest rates, and the Nikkei has managed to claw back roughly a third of the recent decline since reaching a low of 20,565.00 on February 9th, a four-month low.
19 February Nikkei Technical Outlook
With the Japanese index stretching to take back lost ground, the risk is that buying power will run out of steam prematurely and the index will continue to tumble, as the Nikkei is still trading below the 34 EMA and charts are still showing strong potential for a bearish continuation.
Support is being provided by swing highs at 21,865.00 and 21,373.00, while a bullish push will run into resistance at 22,365.00 and the 34 EMA at 22,530.00.
This article 19 February Nikkei Technical Outlook was written by analysts at GKFX. The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice.
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