JPN225: bearish shock downward

Fundamental analysis:

The Nikkei 225 Index closed down 217.80 points, or 0.80%, at 27093.50 on October 7 (Friday). The trading trend of various investment departments from April to September 2022 (Tokyo and Nagoya markets) announced by the Tokyo Stock Exchange recently shows that overseas investors oversold spot stocks by 1.5281 trillion yen. Against the background that the depreciation of the yen is no longer a great benefit for Japanese enterprises, investors are strengthening the attitude of selling Japanese stocks because they do not want to see the value of assets converted in dollars decrease

Nikkei index JPN225 - 4-hour K line chart shows:

Technical analysis:

The 4-hour chart shows that the momentum of high short positions will remain volatile and slowly decline, and the short-term decline may continue. The market short positions will continue to pour in. MACD indicators remain weak in the long regions, and RSI indicators remain weak below the 50 equilibrium line;

Empty turning point: 26770

Pressing: 26904, 27026

Support: 26583, 26465

Trading strategy: sell below 26770, target 26583, 26465

Alternative strategy: bullish above 26770, target 26904, 27026