Market Update 11/6:Nikkei & Hang Seng

After receding rapidly from its abenomic inflated highs,the Nikkei has somewhat stabilized the rate of its fall,though today marked a further 1.45% drop.It is trading below its 50 day MA and just above the 38.2% fibo level as seen on the chart.With Wall Street displaying significant losses at the start,as we are writing this lines,it is unlikely that volatility will recede any time soon for the Japanese index.Especially as the abenomic experiment is likely to unravel along with similar tricks devised by other central banks to maintain the image of an artificial recovery.

NIKKEI_11_6

 

We turn to the Hang Seng to highlight a potentially dangerous trend emerging,as the index just broke a major support at the 21.420 mark,a move that could indicate a double top reversal pattern.By the end of the week it should at least test it or rise above it.If not-and again the Wall Street correction underway seems unlikely to help-then a decisive downward movement will be the main scenario short to mid-term.

HANG_SENG_11_6

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This entry was posted in Markets.

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