Nikkei Engulfing Bar off Key Level | June 5th

Nikkei 225 – Bearish Engulfing Bar, Now Close to Entering Bear Market Territory
On May 26th in my market commentary, I discussed how if the 14000 level collapses, then 13615 and 12700 will come under pressure. Looking at the chart below, we can see how this 13615/60 level was a key level, that once broken, became resistance two times. Today, the index formed a large bearish engulfing bar, dropping over 850 pts on the day just shy of the 12700 aforementioned level.

It should be noted the last three days have formed a wide range, which may play out for another day or two ahead of the NFP report on Friday. If price climbs back up to the 13600/660 level, it should act as resistance, so I will look for sell signals here to rejoin the downtrend. After the 12700/645 support area, the next downside levels where bulls may come in (or profit taking occurs), will be 12000 and 11775, so quite a lot of downside available.

bearish engulfing bar nikkei key level market commentary

For those wanting to join the traders forum, get lifetime membership & more, visit my Price Action Course page here.

Want More? My private members get all my trade ideas & market commentary up to 3x per week. Click here to become a member.

Verified Profitable Trader

Hi, I'm Chris Capre, Founder of 2ndSkiesForex. I've turned $3,000 into $83,000 in my first 6 months of trading. I'm a verified profitable trader and trading mentor. I help traders of all levels change the way they think, trade and perform. As a professional trader, I specialize in trading price action and the Ichimoku cloud. As a trading mentor, I have one goal: to change the way you think, trade and perform using 18yrs of trading experience and cutting edge neuroscience to wire your brain for successful trading. Want to improve your trading edge and mindset? Check out my trading courses here.

Related Article