Two Stock Market Anomalies for the Nikkei

23 june 2022 48
Elena_Berseneva
Elena_Berseneva

Listed among the best MarketCheese authors
1st in the segments "Indices", "US stocks" and "Metals"
2nd in the segment "Currencies"
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The first month of summer is ending and stock market traders have a chance to earn again, following the turn-of-the-month effect.


Starting from the trading session opening tomorrow it is possible to enter long positions in such American stock indices as Nasdaq, S&P 500, DJIA and Japanese Nikkei index. Entering the market 5 days before the end of the month was the best for them.


Let's focus on the Japanese Nikkei index today, because in addition to the turn-of-the-month effect the half-month effect works as well, and the research results showed that the Japanese index is more inclined to rise exactly in the second half of the month.


The Nikkei opened the second half of June with a decline from 26560, and as of today the price has not yet returned to that level. In other words, the growth potential remains.


After a one-week decline of 8.6% since June 8, the index is correcting and trading near the 23.6% Fibonacci level.


It is noticed that the Fibonacci level correction movement reaches the 38.2%, 50%, and 61.8% levels in many cases, before the price determines the further direction.

 


Therefore, the options for entering and exiting the market are as follows:

 

1. Buy the Nikkei at the opening of tomorrow's trading session.

Target orders - Take Profit 1, Take Profit 2 and Take Profit 3 are placed on 26600, 26950 and 27300 respectively.

Protective order Stop Loss is placed below the mark 25500.

It is also possible to close the position at the end of the trading day on July 4 (the best market exit option, according to the research).

 

2. Buy Nikkei on a price rollback down to the mark 25950.

Target orders - Take Profit 1, Take Profit 2 and Take Profit 3 are placed on 26200, 26600 and 26950 respectively.

Protective order Stop Loss is placed below the mark 25500.

The position can also be closed at the end of the trading day on July 4.

 


Warning!

Financial market trading is inherent in high level of risk and can cause loss of investment capital. MarketCheese team is not responsible for the possible loss of your investment funds.

Elena_Berseneva
Elena_Berseneva

Listed among the best MarketCheese authors
1st in the segments "Indices", "US stocks" and "Metals"
2nd in the segment "Currencies"
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