Analysing the Nikkei 225: Insights from the 50D-Moving Average
By Eric Lee, Sales Director from Phillip Nova
50-day Moving Average and Historical Scenario
The 50-day moving average often serves as a key consolidation level for the Nikkei 225.
Historically, after significant up or down movements, the index tends to consolidate around
this average before resuming its trend. A notable example occurred between mid-July and
mid-November 2023. Following a rise from 26,000 to 34,000 points from mid-March to midJune 2023, the index consolidated around the 50-day moving average for 5.5 months before
breaking out and continuing its uptrend.
Current Market Performance
Currently, since early April, the Nikkei 225 has been oscillating along the 50-day moving
average. The suggested resistance level is at 39,460 points. A break above this level could
indicate a resumption of the uptrend. Conversely, if the index falls below 36,700 points, it
would be prudent to exit positions as this level serves as a cut-loss point. Monitoring these
levels can help in making informed trading decisions.
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Capitalising on the Nikkei 225’s movements—trade SGX Nikkei 225 Index Futures at only
50 cents* now and stand to win a pair of air tickets to Japan. Learn more here.
*For applicable terms and conditions and a full risk disclaimer, please refer to
phillipnova.com.sg. This ad has not been reviewed by MAS
50-day Moving Average and Historical Scenario
The 50-day moving average often serves as a key consolidation level for the Nikkei 225.
Historically, after significant up or down movements, the index tends to consolidate around
this average before resuming its trend. A notable example occurred between mid-July and
mid-November 2023. Following a rise from 26,000 to 34,000 points from mid-March to midJune 2023, the index consolidated around the 50-day moving average for 5.5 months before
breaking out and continuing its uptrend.
Current Market Performance
Currently, since early April, the Nikkei 225 has been oscillating along the 50-day moving
average. The suggested resistance level is at 39,460 points. A break above this level could
indicate a resumption of the uptrend. Conversely, if the index falls below 36,700 points, it
would be prudent to exit positions as this level serves as a cut-loss point. Monitoring these
levels can help in making informed trading decisions.
Trade Nikkei 225 at only 50 cents* now
Capitalising on the Nikkei 225’s movements—trade SGX Nikkei 225 Index Futures at only
50 cents* now and stand to win a pair of air tickets to Japan. Learn more here.
*For applicable terms and conditions and a full risk disclaimer, please refer to
phillipnova.com.sg. This ad has not been reviewed by MAS
Disclaimer
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