Nikkei technicals suggest further downside - FXStreet

FXStreet (Córdoba) - The Japanese Nikkei closed 70 points lower at 18,816.02 at the beginning of the week, led by plummeting Toshiba shares, which fell by 9.8% on reports that the company is expecting record losses for the year to March. Also, lower oil prices continued weighing on energy-related equities as the black gold remained near its recent multi-year lows.

Nikkei technical view

“The index has fallen further after the close, and the technical outlook is clearly bearish, as in the daily chart, it remained capped by its 100 DMA while falling further lower, while the technical indicators head south below their mid-lines”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the Momentum indicator heads sharply lower within negative territory and near oversold readings, while the 20 SMA has turned south well above the current level, as the RSI indicator heads lower around 39, all of which supports a continued decline for this Tuesday”.

Support levels: 18,692 18,619 18,532. Resistance levels: 18,773 18,840 18,897.