Technical setup bullish for Nikkei
Technical Analysis Summary Nikkei Index: Buy
| Indicator | Value | Signal |
| RSI | Neutral | |
| MACD | Buy | |
| Donchian Channel | Neutral | |
| MA(200) | Buy | |
| Fractals | Buy | |
| Parabolic SAR | Buy |
Chart Analysis
On the daily timeframe the Nikkei: D1 is rising above the 200-day moving average MA(200) which is rising itself. We believe the bullish momentum will continue after the price breaches above the upper boundary of Donchian channel at 26691.5. A level above this can be used as an entry point for placing a pending order to buy. The stop loss can be placed below 25407.8. 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 expected profit/loss ratio to the breakeven point. If the price meets the stop loss level (25407.8) without reaching the order (26691.5), we recommend canceling the order: the market has undergone internal changes which were not taken into account.
Fundamental Analysis of -
Business activity declined in Japan in November. Will the Nikkei rebound continue?
Japanese economic data of recent weeks were mixed. The third quarter gross domestic product (GDP) rose 21.4% annualized when 18.9% growth was forecast. And balance of trade surplus for October at 872.9 billion yen was bigger than the 250 billion expected. However the disinflation in October at -0.4% was bigger than the expected -0.3%. And the Jibun Bank Japan Composite PMI fell to 47.0 in November 2020 from a 48.0 a month earlier, indicating a further decline in business activity in private sector. Continuing weakness in economic activity is bearish for Nikkei.