Nikkei 225: Negative divergence offers fresh sell entries

Nikkei 225: Negative divergence offers fresh sell entries

After placing the significant peak of 20263.00, Nikkei 225 has achieved consecutive declines, influenced by the triple negative divergence on MACD traditional as seen on the provided daily chart.

Nikkei225-01-05-2015

The clue for short-term Nikkei 225 traders reside in the 18910.00 regions, as a breakout below it will actuate bears to add more quantities for their short positions.

We will be watching the index until it clears the aforementioned support to enter the market selling the index with targets at 18085.00.

It is worth mentioning that, the support of 18910.00 intersects with the 23.6% Fibonacci retracement of the short-term upside wave started in the second week of October at 14370.00.

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Amir El Araby

Co-Founder & Chief Global Strategist at FxComment.com, with 17 years’ experience in the technical analysis studies for FOREX, Commodities and Indices. Amir El-Araby worked as a mentor for many companies and institutes, where he presented new methods for trading in the financial market. Amir is a member of ESTA (Egyptian Society of Technical Analysts). Amir is also the official partner of Harmonic Trader (Mr Scott Carney) and the official instructor of harmonic trader association for Arab countries.

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