- Nikkei 225 reversed from resistance level 26000.00,
- Likely to reach support level 25000.00
Nikkei 225 index recently reversed down with the daily Japanese candlestick reversal Evening Shooting Star from the round resistance level 26000.00, which is intersecting with the upper daily Bollinger Band and the resistance trendline of the wide daily up channel from the start of August. The downward reversal from the resistance level 26000.00 started the active short-term correction (iv) – which belongs to wave 3 from the middle of September.
Given the growing risk-off sentiment seen across the equity markets today, the bearish divergence on the daily Stochastic indicator – Nikkei 225 index is likely to fall further toward the next round support level 25000.00 (target price for the completion of the active short-term correction (iv).