Price on the Nikkei or JPN225 (the major stock index of the Japanese market) pushed lower after forming a Bearish Engulfing Bar = BEEB on the 4 hour price action chart.
This engulfing bar was up at the high and rejecting a major daily price flip level that has been crucial in recent times. As the 4 hour chart shows just below; price has already broken the low of this BEEB, however; if price can break the minor support level that it is now sitting on, there could be more space and room for price to fall into in the coming sessions and days.
The daily chart of this market shows an interesting picture. Anybody who was watching this market may already be in this trade setup and looking to manage this engulfing bar or watch to see if price can ride lower. Price on the daily time frame was making another attempt at breaking through the resistance and major price flip level.
This level has acted as a proven support and resistance in recent history and the 4 hour bearish engulfing bar acted as a false break with price pushing above the major level, before snapping back lower and closing below to once again close below the price flip level.
Daily Chart – Rejection Major Price Flip Level
4 Hour Chart – Bearish Engulfing Bar
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