The Nikkei 225 fell sharply after opening lower, and traded below its 10-day and 5-day moving averages at the close. The RSI also declined, making movements near the resistance line a key focus.
The Nikkei 225 fell sharply, extending its decline after opening lower. Even after selling pressure eased, the rebound was sluggish, and the index formed a bearish candle after closing below its 10-day and 5-day moving averages.
The 9-day RSI fell from 45.0% to 39.3%, and attention is turning to whether the index will again test the key level on the resistance line formed by the rally through the previous day. Next week, the focus will be on whether the index can reverse higher without falling below its recent low and break above the resistance line.
Potential upside levels include ¥64,000 and ¥65,000, the level where the 75-day and 25-day moving averages may converge, and the 10-day moving average, which may also act as upside resistance. Potential downside levels include ¥63,000 and ¥62,000, the 200-day moving average at ¥61,782, and the ¥60,448 low.
Based on these factors, movements around the resistance line and the position of the moving averages may determine the market's subsequent direction.
Provided by DZH Financial Research