The price of index Nikkei Stock Average has been growing since the end of the last week, reaching the lows of January at the level of 16000. At the same time, the price slightly rebounded from the level of 16270 (Fibonacci retracement level of 23.6% towards downward correction, which started in December).
If recovery in the index Nikkei continues, the price can reach the level of 16940 (Fibonacci 38.2%) and 17270 (ЕМА50 on the daily chart). The upper limit of the downward trend coincides with this level.
On the daily and 4-hour charts the indicators OsMA and Stochasic give buy signals. However, it is too early to speak about the change in trend. Downtrend in the index Nikkei Stock Average continues
The price remains in the range of the downward channel with the bottom limit of 14700 on the daily chart. Short positions are preferable.
Support levels: 15800, 15120 and 15000.
Resistance levels: 16000, 16270, 16940, 17270 and 17520.
Sell Stop: 15700.
Take-Profit: 15500, 15100 and 14800.
Buy Stop: 16300.
Take-Profit: 16940 and 17200.