Asian Stocks

Nikkei 225 Technical Analysis Report 02 November, 2020

  • Nikkei 225 rising from support area
  • Likely to reach 23650.00

Nikkei 225 remains well bough today after the index previously reversed up with the daily Japanese candlesticks reversal pattern Hammer from the support area made out of the long-term support level 23000.00 (former strong resistance level from July, which has been reversing all downward corrections from the middle of August), lower daily Bollinger Band and the 38.2% Fibonacci retracement of the upward price impulse (C) from the end of July.

Given the predominant uptrend visible on the daily Nikkei 225 charts  – the index is expected to continue the upward movement toward the next resistance level 23650.00 (which stopped the previous waves (C) and (ii)) – from where the price is likely to correct down.

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