Stable at 28,600 and still trending upwards, Today's session put the brakes on the ongoing uptrend — overall, the Nikkei shed around 58.83 points or 0.18% and ended today's session at 28,600.
This uncertain state for the Nikkei is reflected by published market data as Japan Industrial Production came out at 4.6%, better than analyst estimates of 4.5% and improving upon the previous reading of -5.3%.
Trend-following investors would be interested to note that the Commodity Channel Index (CCI) indicator is above +100, meaning the market price is unusually high compared to the rolling average. After descending below strong Fibonacci support at 28,600, market bears have earmarked 28,025 as the next downside target. Asset volatility analysis shows that the Nikkei's upper Bollinger Band® is at 28,839, suggesting that a downward move may follow. Technical analysis of the Nikkei's past price action reveals multiple support and resistance levels: the Nikkei is oscillating around the 28,543 level serving as support.
Overall, while the Nikkei has been on an uptrend, technical indicators suggest that it has no obvious direction for the immediate future.
While the Nikkei was pretty flat today, mixed performances were seen elsewhere as Hang Seng draws back 1.37% today and closed at 20,651. FTSE is down to 7,889, losing 20.44 points, after ending the previous session around 7,909.44.
Data to be released tomorrow might clear up some of the market fog as projections for Japan Exports are set for a continuation of decline with 2.6% while previous data was 6.5%; data will be released today at 23:50 UTC. Japan Tertiary Industry Activity Index (MoM) is expected tomorrow at 04:30 UTC. Japan Adjusted Trade Balance scheduled to come out today at 23:50 UTC.
The Nikkei hit a significant low of 15.42 around 7 months ago, but has since recovered 185,755%.
