Jpn225: high short tumble

Fundamental analysis:

The Nikkei 225 index closed down 244.74 points, or 0.87%, at 28004.50 on Tuesday, August 9. On the 8th, the Ministry of environment of Japan basically decided to apply for the inclusion of 40 billion yen (about 2 billion yuan) as subsidies to local governments carrying out decarbonization projects in the budget estimates for the next year. The distribution objects include the introduction of renewable energy and the energy conservation of buildings according to the characteristics of solar energy, wind power and other regions.

Nikkei index jpn225 - 4-hour K-line chart shows:

Technical analysis:

According to the 4-hour chart, the power of high-level short positions has fallen rapidly, the market short positions are shrouded in sentiment, and there is no stopping downward trend. MACD index is in weak consolidation near the 0 axis, and RSI index is in narrow consolidation at the lower side of the 50 equilibrium line;

Long and short turning point: 27860

Pressing position: 27940, 28008

Support position: 27763, 27693

Trading strategy: bearish below 27860, targets 27763 and 27693

Alternative strategy: bullish above 27860, targets 27940 and 28008