Nikkei
Nikkei 225 ended higher today after a risk appetite has returned to markets on optimism about the phase one deal between the two superpowers. The Hang Seng index ended 0.49% higher at 27,683; the Shanghai Composite is 0.54% higher at 2,991. Australian stocks also finished higher; the ASX 200 ended 0.15% higher at 6,697 after the Australias Reserve Bank kept the interest rate on hold at a record low 0.75%.
Nikkei 225 finished 1.76% higher at 23,251 as investors tried to catch up to Wall Street rally as the Japanese markets were closed yesterday due to holiday. The Japan Monetary Base (YoY) came in at 3.1% above expectations of 2.9% in October. Bank of Japan kept its monetary policy steady as expected and changed its forward guidance to more clearly signal the future chance of a rate cut.
The Nikkei index hit fresh yearly highs today as the positive momentum on global equities persists holding above all major daily moving averages. Longs should closely watch the daily RSI index, which has reached 75.37, an overbought level that might trigger profit-taking.
On the upside, first resistance for the Nikkei benchmark stands at 23,328 today’s high, a break above will open the way for a move up to 23,400 round figure and then at 23,528 the high from October 9th, 2018, breaking this level, the next resistance comes at 24,310 high from on October 1st, 2018.
On the downside, first support stands at 23,090.9, today’s low, a convincing break below might drive prices down to 21,733 the 50-day moving average and then at 22,450 the low from October 23.