Nikkei testing major resistance, potential for a big drop!

29 mar 2018

Nikkei (JPN225) is testing major resistance at 21409 (Fibonacci retracement, Fibonacci extension, descending resistance) and a strong reaction could occur from here to push prices down to major support at 20276 (Fibonacci extension, horizontal swing low support). We have to be cautious of intermediate support at 20759 (Fibonacci retracement, horizontal overlap support as price might bounce off there too).

Stochastic (89,5,3) is seeing major resistance below 97% where a corresponding reaction could occur.

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