Nikkei 225 : 7000 is a major LT support

On a long term basis the Nikkei 225 has huge support at and near 7800. If this level is taken out it will be a very bad sign for both the market, with little support from here to 6900-7000.

Nikkei futures are currently trying to bounce a tad, but there does not seem to be strong buying. We are monitoring the Nikkei futures as a key global indicator for now, a 15 minute chart of which can be seen below.

 

 

 

 

 

 

 

 

 

 

 

 

Nikkei 225

The Japanese stock market will likely come off to 9920 very fast indeed, with 9760 then 9600 its next major support levels.

Trade View

• A huge opening gap to 9920 or so will likely be seen Monday, and we think the N225 will retrace heavily to nearer 9600 in no time

• The extent of the tragedy is mind boggling, and the near term downside risk is of course massive, but if there is any country on this earth that have the ability to bounce back from such a disaster it is Japan, therefore entry at deep discounts is advised, albeit not from the opening bell Monday.