Nikkei On The Verge Of A Breakout
Alexandros Yfantis | Nov 13, 2013 06:42AM ET
The Nikkei has been trading inside a sideways contracting triangle since this past June. The decline from 15942 to 12415 has been followed by an overlapping price pattern that never exceeded those two levels.
Prices have been trading within the range of 15000 and a series of higher lows from 12415 to the last one at 14026. The sideways price pattern will soon come to an end as prices hit and test the triangle boundaries that are closing in on the index.
Soon we will see a price breakout and traders should take advantage of the trend that will dominate once the breakout occurs.
In the above chart you can see the targets of the move we expect the Nikkei is going make whether it breaks the upper or lower boundaries of the triangle. If prices break below 14026 we will have a downward breakout. Confirmation will come if prices break below 13800. Target for the bearish scenario is 11244. If prices break above 14800 that will be a bullish sign. Confirmation of the upward breakout will be given once prices break above 15000. The first bullish target will be 16560; The second target is 18131.
Disclosure: None of the information or opinions expressed in this blog constitutes a solicitation for the purchase or sale of any security or other instrument. Nothing in this article constitutes investment advice and any recommendations that may be contained herein have not been based upon a consideration of the investment objectives, financial situation or particular needs of any specific recipient. Any purchase or sale activity in any securities or other instrument should be based upon your own analysis and conclusions.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.