The Nikkei 225 is on course for its worst monthly decline since 1990 as global equity markets across the globe continue to tumble.
Nikkei 225 technical analysis shows that the recent bearish breakout under the 18,950 level could prompt a decline towards the 13,000 level.
Nikkei 225 medium-term price trend
The Nikkei 225 is on course for its worst weekly decline in nearly 30 years, as the index continues to break through key downside levels.
Nikkei 225 technical analysis shows that the index remains heavily bearish over the medium-term while trading below the 18,950 level.
The invalidation of a large inverted head and shoulders pattern implies that the Nikkei 225 could fall towards the 13,000 level.
Traders are likely to sell any moves back towards the neckline of the bullish pattern if a counter rally from current levels occurs.
Key upcoming medium-term support for the index is currently located at the 14,880 and 13,650 level.
Nikkei 225 short-term price trend
Nikkei 225 technical analysis shows that the index remains heavily bearish over the short-term while trading below the 19,000 level.
The lower time frame shows that price is fast approaching the June 2016 trading low, around the 14,875 level.
Short-term analysis indicates that the 14,875 level is the foremost technical support prior to the 13,800 and 13,000 levels.
Short-term traders looking to sell rallies should note that key resistance for the index is currently found at the 18,000 and 18,330 levels.
Nikkei 225 technical summary
Nikkei 225 analysis continues to point to more losses in the index towards the 13,000 support level. The next key downside level to watch for further weakness is the 14,875 level.