Nick Nasad
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NIKKEI 225 (1 Hour): Just Like S&P, Testing an Important Support Zone

Earlier, I took a look at the S&P 500 index, which is testing an important support zone, and what happens there will be key to risk sentiment.

Same can be said with the Nikkei225, which is actually a better guide to the fortunes of the JPY crosses.

Just like the S&P500, the Nikkei is a an important resistance turned to support pivot after a 4-session consolidation period.

  1. What happens at this important support zone @ 14510 will determine risk sentiment in the JPY crosses.
  2. This level was a level of resistance back in mid-September (9/10, 9/16. 9/18), and then has acted as support twice so far this week.
  3. The second test of the support now coinciding with the 200-SMA.
  4. If sentiment heads higher and equities rise, the test of the trendline connecting the previous two highs will be an important resistance as well as the horizontal pivot at 14750.
  5. If however, the support cracks, we have the recent channel's support trendline, and then plenty of pivots to choose from as resistance zones on the way down.

- Nick