The Nikkei Average reached an upside resistance level around the open before being pushed back, closing with its first bearish candle in 3 sessions. Although downside risk following an initial buying-led move is considered limited, caution remains warranted regarding the medium-term trend.
The Nikkei Average reached an upside resistance level around the open but was pushed back, with the close forming a bearish candle. The 50-day moving average near ¥67,254 and the psychological levels of ¥68,000, ¥69,000 and ¥71,000 are being watched as upside guides.
Among chart indicators, RSI declined from 35.6% to 31.1% as of 8/27. Although the market closed with a bearish candle, lows have risen over the past 3 sessions, so the move does not appear negative. Some analysts also believe that concern about downside risks would ease if the index moves above the upper cloud boundary.
Downside reference levels include the 25-day moving average at ¥65,633, the base line at ¥65,028, the 100-day moving average at ¥64,398, the psychological levels of ¥63,000 and ¥62,000, and the low of ¥60,448 recorded on 7/29.
Caution remains warranted regarding a further decline from the current mid-range consolidation, but whether the index can break through the upside resistance levels is attracting attention as a factor in the market's subsequent direction.