Technical Analysis – JP 225 index tests crucial support zone
April 16, 2024 9:28 am
JP 225 index pulls back from its all-time high
Drops below 50-day SMA to face March support
Momentum indicators are skewed to the downside
The JP 225 index (cash) has been experiencing a downside correction after posting a fresh all-time high of 41,147 on March 21. In the near term, the price has declined beneath its 50-day simple moving average (SMA), while currently testing the March support of 38,300.
Should the price break below the crucial 38,300 zone, the bears could attack the January resistance of 36,990, which could serve as support in the future. A violation of that territory could open the door for the January support of 35,670.
If the index reverses back higher and reclaims the 50-day SMA, the April resistance of 39,960 could curb initial upside attempts. Surpassing that zone, the price could ascend towards the March resistance of 40,564. Should that barricade also fail, a test of the all-time high of 41,147 might be on the agenda.
In brief, the JP 225 index has been on the retreat following its fresh all-time high, currently challenging a crucial support zone, which overlaps with the lower Bollinger band. Therefore, the outcome of the ongoing test of that hurdle could decide whether the retreat could accelerate.
JP 225 index pulls back from its all-time high
Drops below 50-day SMA to face March support
Momentum indicators are skewed to the downside
The JP 225 index (cash) has been experiencing a downside correction after posting a fresh all-time high of 41,147 on March 21. In the near term, the price has declined beneath its 50-day simple moving average (SMA), while currently testing the March support of 38,300.
Should the price break below the crucial 38,300 zone, the bears could attack the January resistance of 36,990, which could serve as support in the future. A violation of that territory could open the door for the January support of 35,670.
If the index reverses back higher and reclaims the 50-day SMA, the April resistance of 39,960 could curb initial upside attempts. Surpassing that zone, the price could ascend towards the March resistance of 40,564. Should that barricade also fail, a test of the all-time high of 41,147 might be on the agenda.
In brief, the JP 225 index has been on the retreat following its fresh all-time high, currently challenging a crucial support zone, which overlaps with the lower Bollinger band. Therefore, the outcome of the ongoing test of that hurdle could decide whether the retreat could accelerate.
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