Recommendation for Nikkei Index: Buy
Buy Stop : Above 23303.4
Stop Loss : Below 21700.2
| Indicator | Value | Signal |
|---|---|---|
| RSI | Neutral | |
| MACD | Buy | |
| Donchian Channel | Buy | |
| MA(200) | Buy | |
| Fractals | Neutral | |
| Parabolic SAR | Buy |
Chart Analysis
On the daily timeframe the Nikkei: D1 is rising above the 200-day moving average MA(200) which is rising tiself. We believe the bullish momentum will continue after the price breaches above the upper boundary of Donchian channel at 23303.4. 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 21700.2. 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 (21700.2) without reaching the order (23303.4), we recommend cancelling the order: the market has undergone internal changes which were not taken into account
Fundamental Analysis
Japan’s economic reports were mostly positive last week. Will the NIKKEI rebound continue?