Nikkei (12803): Intermediate trend: Bearish
In the previous review we said” a close above 13139-150 is must, to start a corrective up move; if the bulls succeed then expect corrective rally towards 13508 or maximum 13605; else, a slow and steady down move towards target objective of 12754-12550”.
On the very next day (14th July), the index jumped to 13185 but failed to post close above our proprietary levels of 13139-13150; subsequently fallen to 12671 i.e. well within the target area.
The structure is still bearish, despite of last 2 days trading outside the falling parallel. A close above 13070 will give much required strength to the bulls to surpass the ‘key reversal’ points at 13150-13185; if done then (only) expect a corrective rally towards 13.5/13.6k levels. Else expect 12590-12430 in the near term.
On the very next day (14th July), the index jumped to 13185 but failed to post close above our proprietary levels of 13139-13150; subsequently fallen to 12671 i.e. well within the target area.
The structure is still bearish, despite of last 2 days trading outside the falling parallel. A close above 13070 will give much required strength to the bulls to surpass the ‘key reversal’ points at 13150-13185; if done then (only) expect a corrective rally towards 13.5/13.6k levels. Else expect 12590-12430 in the near term.
