JPN225: Move down the low position

Fundamental analysis:

On December 19 (Monday), the Nikkei 225 Index closed down 292.62 points, or 1.06%, to 27234.50 points. Regarding the tax increase announced by Prime Minister Fumio Kishida to strengthen the defense force, 64.9% of the respondents answered "no support", and 30.0% said "support". Regarding the tax increase accompanying the increase in defense expenses, 87.1% of Kishida's explanations were considered "insufficient", far exceeding the 7.2% who considered it "sufficient". The Kishida Cabinet's support rate continued to be sluggish, only 33.1%, which was the same as the previous survey (late November), which was the lowest since the cabinet started.

The Nikkei JPN225——4-hour K-line chart shows:

Brief technical analysis:

Looking at the 4-hour chart: The low-level short-term momentum maintains a slow downward trend, and the short-term decline may continue. The market’s short-term sentiment remains weak and moves downward. The MACD indicator is in the short-term low-level order, and the RSI indicator is in the 50 balance line.

Long-short turning point: 27152

Suppression: 27243, 27331

Support: 27036, 26961

Trading strategy: bearish below 27152, target 27036, 26961

Alternative strategy: call above 27152, target 27243, 27331