Nikkei 225 Buyers Eye 16,000

Nikkei 225 (15,638.52)

Points to consider with the Nikkei 225:

• The Japanese stock bourse has found support above 15,000.
• If the index break above 16,000, then focus shifts bullish towards 16,500 which has proved key in the past.
• Average Trading Range (ATR) are very high.

Despite being down day, the headline Japanese stock bourse, the Nikkei 225, is continuing to recover its Brexit losses. Buyers have found support above the technical support at 15,000 and are edging closer to a challenge the key psychological resistance level at 16,000.

Since hitting a low, last week at 14,518, the index has reversed curse sharply to move back higher. This is the last leg of the recovery from the June 2012 low at 8,190 to the 20,960, which was the June 2016 high. This fall lower was induced by traders panicking after the Brexit which also sent the 14 day ATR to its highest level since February 2016.

Nikkei 225 Technical Analysis

Let’s talk about today’s technical analysis for Japan’s stock bourse. A break higher puts focus on the key technical barrier of 16,000 which would then expose 16,500. The latter level has been influential in the past as it holds the key to short term directional conviction. It decides whether or not the bulls really come out to play. This level, at 16,500 is also supported by broken channels and former support now resistance.

However, a break below 15,000 has bearish implications. This would put the key downside barrier of 14,000 into focus. The next technical support level to watch lines up at 13,000.