NIKKEI BEARISH AFTER HOPES OF NEW US-CHINA TRADE TALKS
Nikkei 225 inched lower by 0.05% to close at 22,192.04 on Thursday. The Nikkei was deeply in negative territory in morning trade, but erased early losses at the midday break after China’s commerce ministry’s announcement that Vice Minister Wang Shouwen will hold talks in Washington in late August.
However, the broader Topix plunged 0.6% to 1,687.15, after touching its lowest level since late March. The dollar was slightly down against the yen at 110.75 at the time of writing, compared with 110.80, closing price of previous trading session.
Stocks of Japanese department stores, cosmetics makers and drugstores, which benefit from inbound tourism, fell sharply on news of lean visitor arrivals in July.
Large cap, index-heavy Fast Retailing rose 2.1%, while Fanuc Corp surged 1.0%, helping the Nikkei outperform the Topix by adding 46 positive points to the Nikkei benchmark index.
On the technical front, the RSI is currently at 45.6% and suggests that the market can continue trading sideways. The current price is below the middle band of Bollinger bands. The price is below MA20 .So, overall the market setup seems to be mixed to negative.
Trade Suggestion-Limit Sell At: 22220, Take Profit At: 22100 Stop Loss At: 22280