Technical Analysis NIKKEI : 2020-04-10

Indicator Value Signal
Stochastic Neutral
Donchian Channel Neutral
Fractals Buy
Parabolic SAR Buy
MA(200) Sell

Chart Analysis

On the daily timeframe the Nikkei: D1 is rising toward the 200-day moving average MA(200) after hitting 37-month low in mid-March. We believe the bullish momentum will continue after the price breaches above the upper boundary of Donchian channel at 19854.6. A level above this can be used as an entry point for placing a pending order to buy. The stop loss can be placed below 17529.9. After placing the order, the stop loss is to be moved every day to the next fractal low, following Parabolic signals. Thus, we are changing the expected profit/loss ratio to the breakeven point. If the price meets the stop loss level (17529.9) without reaching the order (19854.6), we recommend cancelling the order: the market has undergone internal changes which were not taken into account.

Fundamental Analysis

Japan’s economic data have been mixed in recent weeks. Will the NIKKEI rebound continue?