Featured Trade: Nikkei 225 bearish elements sighted at minor range resistance

Bullish exhaustion sighted in Nikkei 225 below minor range resistance.

Short-term technical outlook on Nikkei 225/Japan 225 (Tues 28 May)

click to enlarge chart

Key technical elements

  • The on-going rebound of 2.4% seen in the Japan 225 Index (proxy for the Nikkei 225 futures) from last Fri, 24 May Asian session low of 20797 has almost reached its minor range resistance of 21400.
  • Interestingly, it has started to exhibit bullish exhaustion signals as price action has formed a minor bearish “Ascending Wedge” configuration in place since 24 May 2019, U.S. session low of 21047 with an extreme overbought reading seen in the hourly Stochastic oscillator.
  • The significant near-term support to watch will be at 20800 as defined by the minor range bottom in place since 14 May 2019.

Key Levels (1 to 3 days)

Intermediate resistance: 21300

Pivot (key resistance): 21400

Supports: 21060 & 20800

Next resistance: 21900 (key medium-term pivot)


If the 21400 key short-term pivotal resistance is not surpassed, the Index may see a further potential push down to target 21060 follow by the minor range support at 20800 in the first step.

On the other hand, a clearance with an hourly close above 21400 sees an extension of the corrective rebound towards the 21900 key medium-term pivotal resistance as per highlighted in our latest weekly technical outlook report (click here for a recap).

Charts are from City Index Advantage TraderPro

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.