The JP 225 index continues its downtrend move, recording successive lower lows and lower highs as negative momentum lingers. Moreover, the index is currently trading well below its 50- and 200-day simple moving averages (SMAs), reinforcing the overall bearish outlook.
Despite the bearish outlook, short-term oscillators are reflecting a positive bias as the RSI is increasing despite being below its 50 neutral mark. Also, although the MACD is below zero, it has recently crossed above its red signal line, which indicates that the negative momentum in the price might be fading.
The bulls seem to have resurfaced over the last few trading sessions. Should they manage to push the price above the January low at 26,015, buyers could then eye the region which includes the 50-day SMA and the 26,970 barrier. Crossing above the latter could send the price towards the consecutive hurdles of 27,370 and 27,880.
However, if the bears regain control the first line of defence could be found at the 24,300 level. A break below this point could intensify selling pressures, opening the door towards the September 2020 support at 23,470, before sellers target the October 2020 low at 22,850.
In brief, despite the fact that the index’s bias seems to be improving, the overall outlook remains bearish amid successive lower highs. For sentiment to change, buyers would need to break above the 50-day SMA currently at 26,920.
Signal2forex.com - Best Forex robots and signals
