A quick look at today: after ending yesterday at 27,634, the Nikkei went up to 28,068 only to drop back, yet still traded well overall and closed at 27,923 today.
Despite posting gains on today, Nikkei slid below its 21 day Simple Moving Average at 27,877 during the last session — an early indicator that a negative trend could be emerging. In contrast, Fibonacci-focused traders would be interested to note that the Nikkei is oscillating around the key Fibonacci resistance level of 28,025.
Despite basking in an uptrend and bullish intraday sentiment, chart analysis indicates the Nikkei is set for a reversal in the coming days.
The Nikkei shows positive signs, other assets are also on par: ASX 200 leaps up 1.26% today and closed at 7,219. KOSPI Composite Index climbs 1.42% today and closed at 2,512. CAC improves 0.89% today and closed at 7,324.75.
The index has been trending lower for about a month. The Nikkei has recovered 179,100% since descending to a significant low of 15.42 around 6 months ago.