Saturday, August 23, 2014

Weekly Market Reivew N225

N225 closed at 15,539.19 on Friday, 22-Aug-2014, gained 220.85 (1.44%) over the last 5 trading days.  NKVI lost 0.31 (1.72%) ending the week at 17.69.

Looking at the bigger picture on daily chart, N225 broke through the tight range of 15,000-15,500 on Thursday.  It held above it on Friday.  We need to see if N225 can stay above 15,500 next week or if it fall back to the tight range, to give us a clear idea where it is heading.  Of course, a break of its previous high at 15759.66 is a bullish move.

Looking at the weekly chart, N225 took two weeks to recover all its loss in that knee jerk reaction week.  It is now back above the tight range of 15,000-15,500.

Looking at the monthly chart, the long pin bar which was red has turned green.  This is bullish.  With only 220 points away from last month high, it will be even more bullish if it can break it with the remaining 5 trading days.

NKVI didn't move much this week.  It seems like we are back to low volatility.  If we wait for mean reverting of volatility to trade, we could be waiting for a long time.  Need to figure out how to trade in this low volatility.

SPX broke another record high (depite with just 4 points) on Thursday.  It closed at 1988.40, down 3.97 points on Friday.  This won't have much effect on N225 when it opens on Monday.

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