JP 225 stock index (Cash) appears may prolong its sideways crawl as the price stalled underneath the 22,825 upper bound of the range. Although the price found some footing on the 200-period simple moving average (SMA), the Ichimoku lines, the 50- and 100-period SMAs continue to indicate unclear direction and conflicting views.
Conflicting signals are also suggested in the short-term oscillators. The MACD is above its red trigger and zero lines, while the RSI has marginally weakened under the 80 level. Traders need to just be aware of the 200-period SMA as things unfold.
Should sellers manage to steer lower, fortified support could commence around the 22,370 mark from the stalled SMAs and Ichimoku lines. Pushing under the cloud, the 200-period SMA at 22,176 could impede the price from reaching the bottom of the range at 21,965. Should sellers’ efforts penetrate the floor of the sideways market, the attention could shift towards the crucial 21,492 and 21,369 lows respectively. If these barriers fail to halt the decline, the pair may then test the 21,139 trough of May 27.
Alternatively, surpassing the roof of the consolidation at 22,825, buyers may encounter early resistance from the 22,967 barrier. If a sustained climb endures overrunning the 23,172 high and the key 23,302 peak, the index may even extend towards the 23,802 obstacle.
In brief, the very short-term picture is neutral, and a break either above 22,825 or below 21,965 could signal the next impulse of price action. Yet, a break above 23,302 would confirm the positive structure is still valid.
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