Japan 225 (JP225USD) Slumps Into Oversold Region, Upward Move Likely

Key Resistance Zones: 23200, 23600, 24000
Key Support Zones: 20800, 20400, 20000

Japan 225 (JP225USD) Long-term Trend: Bearish
Japan 225 index was in an uptrend since August 2019. The index rose from the low of 20000 to 24000 in February. The index has a sharp fall to the low of 20435 after the bulls were resisted at the top. Earlieron the bulls have made efforts to break the overhead resistance but were unable.

Nonetheless, with the current fall to the low of 20435, the market has slumped into the oversold region. As the downward move entered the oversold region, selling pressure has been overdone. Buyers are expected to emerge in the oversold region.

Daily Chart Indicators Reading:
Japan 225 is below 20% range of the daily stochastic. This indicates that the index is in the oversold region of the market. In this region, selling has been exhausted. The 21-day SMA and the 50-day SMA are pointing downward indicating the downtrend.

Japan 225 (JP225USD) Medium-term Trend: Bearish
On the 4- hour chart, the bulls have a tussle with price at the overhead resistance before the downward move. Before the breakdown, JP225USD has been fluctuating between 22880 and 24000. On February 19, the bulls made an upward move but the resistance causes the index to slump to the current support at 20435.

4-hour Chart Indicators Reading
The index is currently at level 33 of the Relative Strength Index period 14. The market is likely to fall as it is below the centerline 50. The 21-day SMA and the 50-day SMA are sloping southward.

General Outlook for Japan 225 (JP225USD)
Japan 225 has slumped into the bottom of the chart. Selling pressure has been overdone as the market entered the oversold. By default, we should see the presence of buyers in the oversold region. The breakdown resulted in another trend.

Instrument: Japan 225 (JP225USD)
Order: Buy
Entry price: 20435
Stop: 20000
Target: 23200

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