Technical Analysis – JP225 index bulls remain focused on retesting 28,650
April 27, 2023 2:27 pm
The JP225 cash index is edging higher today as the bulls are trying to figure out a way to break the resistance set at 28,650. This area has been haunting them since March 2022 with the most recent price action bringing back memories of the August 14, 2022 failed breakout that prompted a sizeable drop during September 2022.
While the JP255 index bounced off the March 15, 2023 upward sloping trendline today, the momentum indicators are not painting a favourable picture for the bulls. The Average Directional Movement Index (ADX) is on a downwards path and the stochastic oscillator is trying to break below its overbought territory. Such a move would be seen as a bearish signal. On the other hand, the RSI remains above the 50-threshold, but a potential failure in making a higher high could increase the bulls’ worries.
Should these signs infuse confidence in the bears, the first target would come at the Jun 9, 2022 high of 28,394. The 23.6% Fibonacci retracement level of the March 8, 2022 – August 17, 2022 uptrend at 28,113 could then prove tougher to overcome, just ahead of the much busier 27,843-27,852 range that is defined by the February 6, 2023 high and the 50-day simple moving average (SMA) respectively.
If the bulls decide to ignore the mixed technical signs, they will most likely have another go at the crucial 28,649 level. If they finally managed to break this level, they would quickly set their eyes on the January 14, 2021 and August 17, 2022 highs at 28,976 and 29,229 respectively.
To conclude, the bulls are trying to find a way to break above the 28,650 area. They appear to be running out of time as a move below the March 15, 2023 trendline would allow the bears to stage a stronger comeback.
The JP225 cash index is edging higher today as the bulls are trying to figure out a way to break the resistance set at 28,650. This area has been haunting them since March 2022 with the most recent price action bringing back memories of the August 14, 2022 failed breakout that prompted a sizeable drop during September 2022.
While the JP255 index bounced off the March 15, 2023 upward sloping trendline today, the momentum indicators are not painting a favourable picture for the bulls. The Average Directional Movement Index (ADX) is on a downwards path and the stochastic oscillator is trying to break below its overbought territory. Such a move would be seen as a bearish signal. On the other hand, the RSI remains above the 50-threshold, but a potential failure in making a higher high could increase the bulls’ worries.
Should these signs infuse confidence in the bears, the first target would come at the Jun 9, 2022 high of 28,394. The 23.6% Fibonacci retracement level of the March 8, 2022 – August 17, 2022 uptrend at 28,113 could then prove tougher to overcome, just ahead of the much busier 27,843-27,852 range that is defined by the February 6, 2023 high and the 50-day simple moving average (SMA) respectively.
If the bulls decide to ignore the mixed technical signs, they will most likely have another go at the crucial 28,649 level. If they finally managed to break this level, they would quickly set their eyes on the January 14, 2021 and August 17, 2022 highs at 28,976 and 29,229 respectively.
To conclude, the bulls are trying to find a way to break above the 28,650 area. They appear to be running out of time as a move below the March 15, 2023 trendline would allow the bears to stage a stronger comeback.
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