Nikkei and Half-Month and Turn-of-the-Month Effects

13 July 2022 422
Load the latest quotes
Full screen

The second half of the second summer month is coming, and it means that there is a new opportunity to trade the Japanese stock index Nikkei 225, the German stock market index DAX and the French index CAC 40, which demonstrated high efficiency in the second half of the months .


Today the preference will be given to the Japanese stock index as an instrument with a significant average return per transaction (above 0.3%), 91.7%of the growth of which falls on average on the second half of the month, as one of the research revealed.


Since the beginning of the year, the Nikkei 225 has been traded within the price range of 25700 - 28300. The upper limit shifted to the level of 27000 last month. No trend in the price movement has been observed yet.


At the moment, the price is around the level of 26500


On July 18, the second half of the month will start and it will result in the beginning of the turn-of-the-month effect on July 27, according to which the best option for entering the market for the Nikkei 225 is 5 days before the end of the month.




So, possible options for entering the market are:


1. Buy the Nikkei 225 at the opening of trading session on July 18.

Target orders - Take Profit 1 and Take Profit 2 are placed on 27000 and 28300 respectively. 

You can limit the losses by placing the Stop Loss order below 25500.

It is also possible to close the position at the end of the trading day on July 29 or August 2.


2. Buy/top up a position at the opening of trading session on July 27.

Then target orders - Take Profit 1 and Take Profit 2 can be placed on 27000 and 28300 respectively. 

Protective order Stop Loss is placed below 25500.

The position can be partially closed at the end of the trading day on July 29 and the rest - on August 2.  



Remember about the rules of money management! 




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

This content is for informational purposes only and is not intended to be investing advice.

New Popular
Commenting rules