A quick look at Friday: the Nikkei slid down from 28,658 to 28,564, taking a 93.2 points loss (0.33%)
Nikkei made an initial break below its 5 day Simple Moving Average at 28,574, a possible indication of a forthcoming negative trend. A Bearish Harami chart pattern, which is a means of predicting reversals in bull markets. When a Bearish Harami is detected at the top of a prevailing uptrend, it is typically considered a bearish signal and a prelude to a potential trend reversal. The Nikkei's upper Bollinger Band® is at 28,925 which indicates a further downward move may follow. On the other hand, note that the Nikkei could begin to recover as it approaches significant support, now 80.14 points away from 28,500. Dipping below could be an indication that further losses are ahead.
Following today's unexpected losses, extensive multifactorial technical analysis forecasts the Nikkei to buck against its prevailing uptrend and begin to dip lower in the short term. With all probabilities considered, the the Nikkei is expected to attract significant bearish sentiment in the coming days.
In the meantime, negative performances are also seen in other markets, Hang Seng lost 1.57% Friday and closed at 20,400. KOSPI Composite Index draws back 0.73% Friday and closed at 2,563. ASX 200 lost 0.43% Friday and closed at 7,362.2.
The Nikkei is now trading 185,747% above the significant low (15.42) it slumped to 7 months ago.