Today, the price of the index Nikkei Stock Average went back below resistance level of 16270 (Fibonacci 23.6%). The decline was triggered by strong US data last Friday, risk aversion, and increasing demand for safe haven currencies triggered by the outcome of the meeting of G20 in Shanghai. The meeting highlighted concerns about downside risks in the world economy.
Correction is unlikely to go above the level of 16270. The index Nikkei Stock Averageis declining in the downward channel on the daily chart with the bottom limit near the level of 14700.
The price has broken down important support level of 16080 (ЕМА200 on the hourly chart and ЕМА50 on 4-hour chart). After consolidation of the price below the level of 16000, the decline might continue up to the lows of February at the level of 15000 (Fibonacci 0% versus the decline started in December).
In 4-hour chart the indicators OsMA and Stochastic give sell signals. Short positions remain preferable.
Support levels: 16000, 15800, 15120 and 15000.
Resistance levels: 16080, 16270, 16800, 16940, 17270 and 17520.
Sell Stop: 15700.
Take-Profit: 15500, 15100 and 14800.
Buy Stop: 16300.
Take-Profit: 16800 and 16940.