Nikkei 225 may fall to 36700 - 38000

Pivot

39700

Our preference

Short positions below 39700 with targets at 38000 & 36700 in extension.

Alternative scenario

Above 39700 look for further upside with 41100 & 42600 as targets.

Comment

The RSI is mixed and calls for caution.

Supports and resistances

42600 **

41100 **

39700 ***

38900 Last

38000 ***

36700 ***

35700 **

Number of asterisks represents the strength of support and resistance levels.