Technical Analysis – JP 225 index flies more than 5% to reach 3-month high
March 7, 2023 11:28 am
The JP 225 index has advanced considerably by about 5% since roughly the end of February and is currently exiting from the upper Bollinger band, recording a new three-month high at 28,396. Looking at momentum indicators, the RSI is flattening near the 70 level, suggesting that the market may be overstretched, while the MACD is standing above its trigger and zero lines.
In terms of negative pressures, the market could meet support at the 27,850 barrier before it heads lower to the mid-level of the Bollinger band at 27,600 ahead of the flat 200-day simple moving average (SMA) at 27,350. A successful close below this level could see a retest of the previous low of 26,950, which overlaps with the lower Bollinger band.
On the flip side, a move to the upside could see immediate resistance at the 28,500 barrier but should the market increase positive momentum above this area, the 28,680 level could be the next mark in focus. A stronger barrier, though, could be found at the 29,230 region, registered last summer.
Turning to the long-term picture, the market seems to be in a neutral mode given that the index is trading below the 29,230 peak and above 25,600.
The JP 225 index has advanced considerably by about 5% since roughly the end of February and is currently exiting from the upper Bollinger band, recording a new three-month high at 28,396. Looking at momentum indicators, the RSI is flattening near the 70 level, suggesting that the market may be overstretched, while the MACD is standing above its trigger and zero lines.
In terms of negative pressures, the market could meet support at the 27,850 barrier before it heads lower to the mid-level of the Bollinger band at 27,600 ahead of the flat 200-day simple moving average (SMA) at 27,350. A successful close below this level could see a retest of the previous low of 26,950, which overlaps with the lower Bollinger band.
On the flip side, a move to the upside could see immediate resistance at the 28,500 barrier but should the market increase positive momentum above this area, the 28,680 level could be the next mark in focus. A stronger barrier, though, could be found at the 29,230 region, registered last summer.
Turning to the long-term picture, the market seems to be in a neutral mode given that the index is trading below the 29,230 peak and above 25,600.
Related Posts: