NIKKEI 225 : The Index is forming Lower Highs and Lower Lows which says that the trend is changing.

Overall the index has a support at 27092 (marked as red) . It's a previous  level where a doji was seen and a bounce back was seen in the index.

If the index closes below the support line we can expect the index to correct more.

The Index is trading below the 50 & 200 EMA which is a negative sign for the index.

RSI : As the trend has changed the upper and the lower band of the rsi has been changed accordingly. Rsi has given a breakout from its rectangle pattern, before this a breakout a false breakout was seen so for this breakout to not be a false it has to trade below the previous low, so if the rsi trades below the previous low it will support the price action.

MACD : Macd has crossed above 0 and is trading below 0, below this level the Macd has corrected over -350 to -550 which will also support our analysis.

Index is trading below the Ichimoku cloud which is again a good confirmation for our analysis.

Advice : Sell once the index closes below the Support and take a position on the sell side with a SL of 1%.

Selling Opportunity

Jul 19 2021

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