After falling sharply for a second straight session, the Nikkei Stock Average showed signs of a rebound toward the afternoon session. The RSI declined, while the closing price remained slightly above the 200-day moving average and formed a candlestick with a long lower shadow.
The Nikkei Stock Average suffered a sharp decline, at one point falling as selling prevailed from the outset. Toward the end of the session, ¥60,000 was watched as a psychological milestone, and the index showed stronger signs of recovery from the middle of the afternoon session onward.
The 9-day RSI fell from 42.9% to 33.5%. Although the intraday low of ¥60,030 briefly fell below the 7/29 low of ¥60,448, the index held above the 200-day moving average of ¥61,886 on a closing-price basis.
It formed a takuri candlestick with a long lower shadow, suggesting the potential for a short-term test of higher levels. Going forward, the 10-day moving average at ¥63,285, along with the psychologically watched ¥64,000 and ¥65,000 levels and the 75-day and 25-day moving averages, are likely to be watched as resistance.
Potential downside targets include the 200-day moving average, the psychological milestone of ¥61,000, the 7/29 low of ¥60,448 and ¥60,000. The assessment of downside risk may change depending on future developments.