Nikkei Index Technical Analysis | Nikkei Index Trading: 2018-06-14 | IFCM
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Nikkei Index Technical Analysis - Nikkei Index Trading: 2018-06-14

Strong data bullish for Nikkei

Rising business investment and retail sales are bullish for NIKKEI. Will NIKKEI continue the climb?

Economic data from Japan after negative first quarter GDP report have been mostly positive. Industrial production growth accelerated to 2.6% over year in April from 2.5% in March, and retail sales rose 1.6% over year from 1% in March. Machinery orders, which are a proxy for business capital investment, also rose – to 9.6% over year in April after 2.4% contraction in March. With Bank of Japan expected to keep its monetary stimulus program intact Friday, rising business investment and retail sales are bullish for NIKKEI.

NIKKEI price

On the daily chart the NIKKEI: D1 has been rising after hitting nine-month low in the end of March. The price above the 50-day moving average MA(50) whish is rising too.

We believe the bullish momentum will continue after the price closes above the upper boundary of Donchian channel at 22999.70. This level can be used as an entry point for placing a pending order to buy. The stop loss can be placed below the last fractal low at 21919.40. 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 probable profit/loss ratio to the breakeven point. If the price meets the stop loss level (21919.40) without reaching the order (22999.70), we recommend cancelling the order: the market has undergone internal changes which were not taken into account.

Technical Analysis Summary

PositionBuy
Buy stop Above 22999.70
Stop loss Below 21919.40

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This overview has an informative and tutorial character and is published for free. All the data, included in the overview, are received from public sources, recognized as more or less reliable. Moreover, there is no guarantee that the indicated information is full and precise. Overviews are not updated. The whole information in each overview, including opinion, indicators, charts and anything else, is provided only for familiarization purposes and is not financial advice or а recommendation. The whole text and its any part, as well as the charts cannot be considered as an offer to make a deal with any asset. IFC Markets and its employees under any circumstances are not liable for any action taken by someone else during or after reading the overview.

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