Nikkei 225 rebounds from support - go long!

11 May 2022 134
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The second half of May is coming, and it means that there is a new opportunity to work with the Japanese index Nikkei 225, the German stock market index DAX and the French index CAC 40, which had showed its well in the second parts of the month of the year.

 

Today we will focus on the Japanese stock index as an instrument with a significant average yield of a deal, 91.7% of the growth of which falls on average just in the 2nd half of the month, as one of the studies showed.

 

Since the beginning of the crisis in Eastern Europe, Nikkei 225 index had lost 6.7%, but subsequently positions were restored rather quickly.

 

Currently, the index is traded within a price range of 26000 - 27450, as it was during the previous month.

 

Since a high level of geopolitical uncertainty, economic tensions and sanctions pressure is preserved, and the end of the conflict is not yet expected, probably the Japanese index will continue the flat movement. 

 



The technical picture is (daily timeframe):


1). Near the support level of 26000, a candle is visible, close to the doji - a reversal candlestick pattern, which will be confirmed if it closes above 26330 today;

2). The price has reached the lower Bollinger band;

3). The AD indicator line is in the positive zone.

 

All together, it speaks of the likely growth of the index to the upper limit of the range of 27450.

 



Which options to enter the market are possible?  

 

1. Buy Nikkei 225 from the market at the current price.

The points 26750 and 27450 can be the corresponding target orders for Take Profit 1 and Take Profit 2.

You can limit the losses by the Stop Loss order below the point of 25750.

Also, you can close the position at the end of trading on May 31

 

2. Buy the index when the cost decreases to the point 26000.  

Then, the points 26750 and 27450 can be the corresponding target orders Take Profit 1 and Take Profit 2.

Limit the losses by the Stop Loss order below the point of 25750.

Also, you can close the position at the end of trading on May 31.

 



Warning! 

Trading on financial markets implies high levels of risk and can lead to a loss of investment capital. The MarketCheese team isn’t responsible for the possible loss of Your investment funds.

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