Asian markets have been in turmoil since the news related to China Evergrande's (OTC:EGRNY) probable default hit the markets. However, as of now, fears seem to be in check after the company indicated in an exchange filing that the company’s payments, due today, having been taken care of through discussions with the clearing house. Furthermore, the People's Bank of China poured 90 billion yuan into the financial sector to help stabilize markets.
As of 11.33 p.m. EST, the Nikkei slumped 0.67% and the Shanghai Composite Index soared 0.45%. Seoul's KOSPI declined 0.63%. The ASX 200 index jumped 1.20% and the Hang Seng index, in Hong Kong, rose 0.90%.
The Nikkei index has eased off its recent highs which we mentioned in our previous analysis. Having said that the price is still trading above the 50, 100 and 200-day SMA on the daily time frame which means that the bulls are still in control of the price. In addition to this, the price is likely to see a silver cross which means the 50-day SMA is about to cross above the 100-day-SMA on the daily time frame. This will confirm a further sign of confidence among bulls which may push the Nikkei index back near its all time high. Watch the chart below to learn about the potential support and resistance zones.
