JP 225 index looks to be creating a floor around the 26,100 support as the RSI and the MACD seem to have reached a bottom in bearish territory and are now changing direction to the upside.
Traders, however, would be more eager to engage in buying activities if the price manages to surpass the nearby 20-day simple moving average (SMA) around 26,950. If this is successfully breached, then the rally may next rest near the 40-day SMA at 27,281 and the 27,900 resistance. Moreover, a closure above the 200-day SMA at 28,474 may be needed to push the price towards the valid resistance trendline dewan from the September 2021 peak of 30,800.
On the flip side, the selling pressure could accelerate again if the market deteriorates below the former strong support area of 26,100. Such a move could next bring the 15-month low of 25,555 under the spotlight, which if violated could trigger sharper losses probably towards the 2019 peaks of 24,171.
In the medium-term timeframe, the pair is in a bearish trend since September 2021 and only a rally above the descending trend line would put the market in a sideways path.
