N225 Retracement Beyond Recent Lows
Considering the current $N225 price action, especially the day's significant drop from earlier highs and closing near the low of its daily range at 69360.88, I'm leaning towards a high probability of a deeper retracement in the coming week. The prior support around 68639.84 was tested today, but the momentum suggests a potential break below it. While the overall trend for Nikkei has been strong, this sharp rejection from 71k levels, combined with the -4.15% daily performance, indicates a shift in short-term sentiment. I'd assign roughly 65-70% probability that we'll see a test of the 68,000 level, and possibly 67,500, before next Friday's close. My reasoning is that the sellers are clearly in control now, and without a significant catalyst to reverse the current bearishness, it's more likely we'll see continuation downwards as prior buyers' stop losses get triggered. The current high $KES stability doesn't offer any global macro offset for this specific equity move.
That's a very plausible read on the N225's current situation. The failure to hold earlier gains and the close near the low of the day definitely point to a shift in short-term sentiment. Do you see any specific levels below 68639.84 that might offer a strong buying opportunity if we do break through?