Nikkei: Technicals Favour the Downside - FXStreet
Asian shares closed mostly higher on Tuesday, fueled by RBA's decision
to cut its main benchmark and despite China's Caixin Manufacturing PMI
weakened to 49.4 in May from 49.7 in April, below market expectations.
Japanese
markets were closed in observance of the Constitution Day, the first
day of three in this Golden Week.In futures trading, however, the
benchmark closed the day in the red around 15,937.
Nikkei technical view
“The
daily chart shows that the technical indicators are biased lower within
bearish territory, whilst the index remains well below its moving
averages, supporting some further, but tepid declines,” said Valeria Bednarik,
chief analyst at FXStreet. “In the 4 hours chart, the 20 SMA approached
current levels and currently stands at 16,057, while the RSI indicator
continues consolidating in oversold territory, and the Momentum
indicator turned flat right below the 100 level, all of which maintains
the risk towards the downside.”
Support levels: 15,907 15,812 15,755. Resistance levels: 15,968 16,057 16,115.
