Technical setup bearish for Nikkei

August 6, 2020

By IFCMarkets

Technical setup bearish for Nikkei

Japanese economic data of the latest week were mixed. Retail sales rose in June, unemployment ticked down, industrial production grew in June, and consumer confidence continued to improve fourth month in a row in July. Thus, retail sales rose 13.1% over month in June after 1.9% growth in May, industrial production rose 2.7% in June after 8.9% drop in May, unemployment slipped to 2.8% from 2.9% in May, and consumer confidence index increased to 29.5 in July, the highest in 4 months, from 28.4 in June. At the same time both construction orders and housing starts declined more in June. Continuing weakness in economic activity is bearish for Nikkei. On the other hand improving data are upside risk for Nikkei.

Indicator VALUE Signal
RSI Neutral
MACD Sell
Donchian Channel Sell
MA(200) Buy
Fractals Neutral
Parabolic SAR Sell

 

Summary of technical analysis

Order Sell
Buy stop Below 21700.20
Stop loss Above 20222.30

Market Analysis provided by IFCMarkets


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