After two weeks of a choppy trading in most of the global equities, due to the global geopolitical tensions, some of these indices tried to recover losses. However and so far, they are still far away from recovering.

This is even though the geopolitical tensions between the US and North Korea has eased significantly ahead of the Jackson Hole meetings which ends on Saturday.

Earlier this morning, Asia closed strongly higher, including Nikkei 225, Shanghai Composite Index and Hang Seng, while Europe remains slightly higher today with an average of 0.3% until this report is released. Finally, the US futures are still higher so far.

The big question remains here, is the downside correction over? It’s not a yes or no question, as things are getting more interesting every day. However, we will take a look at some indices from a technical point of view, which might give us some clues about the next move.

Nikkei 225 Above 19,500 Once Again

The Nikkei 225 declined earlier this month from its highest level in almost two years around 20,300 all the way back to 19,250 after breaking through its 50 and 100 DAY MA on the daily chart.

However, the Index bounced off its 200 DAY MA, after testing it for the first time since November of last year. Yet, this is not enough to renew the upside trend, especially that the index has broken through the 19518, which represents a solid former support.

In the meantime, a break above that resistance is still needed to clear the way for further gains, probably to retest 19750 maybe 19970.

Otherwise, another leg lower could be seen, which might lead to a break below that 200 DAY MA, which may also lead to another decline back to 19000 as a first immediate support.

FTSE 100 Remains Solid Above 7310

FTSE100 failed to break above 7550 resistance area after testing it multiple times in May of this year, leading to another downside retracement back in June, July and August back to 7310, which held perfectly.

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