Today's Asian Pacific markets are mixed as investors keep a close eye on the situation in the United States. The Nikkei 225 index is up today after Japan revised up its growth forecast for the second quarter. According to economic data, the country's economy grew by 1.9% on an annualized basis. The actual figures outperformed the projected growth rate of 1.3%.
As of 11:37 p.m. EST, the Nikkei rose 0.82% while the Shanghai Composite Index was trading flat. The ASX 200 index dropped 0.25% and Seoul's Kospi declined 0.48%. The Hang Seng index, in Hong Kong, has jumped 0.1%.
The Nikkei index has experienced a sharp bounce during the past few days and traders are pushing the price higher. The price isn’t too far off from its all time-high, and it is this price point where can a possibility of a double top forming—a bearish pattern. But that is only if the price fails to cross above the all-time high. In terms of the RSI, there is no doubt that it is telling us that the price is way overbought and a correction may take place, and this takes us back to the possibility of a double top forming argument stated above.
The support and resistance zones are marked on the chart below along with the 50(in green), 100(in orange) and 200(in green) day SMAs.
