Saturday, July 3, 2010

Nikken 225 Update

The chart of Nikkei 225 looks pretty ugly.  Taking March 2009 low to April 2010 high as 100% and draw the Fibonacci retracement lines, you will notice Nikkei has exceeded its 50% retracement level of 9213.  Momentum is down, and RSI is weak.  The short-term GMMA expands and the separation between short-term GMMA & long-term GMMA expands too.  The down trend is intact.  Further weakness in Nikkei should be expected.  There may be a good chance for Nikkei to hit its 61% retracement of 8698 points. 

Patience will be a virtue in such a market for any bottom-fishing opportunities.  Some signs of trend reversal should surface before any long trades.

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