Nikkei 225 reaching new lows (20.08.2021)

Nikkei 225 index and Advance decline Line reaching new lows

On 16.02.2021, Japan's Nikkei 225 index started its correction on a very high level.

At the moment, the index is trading 12,77% lower than on that specific day in February this year.

Looking at the chart, a new low was reached a couple of hours ago, and even the Advance Decline Line followed the price, also reaching a new low in this correction.

The Advanced vs. Declined data, however, went up during the last trading day.

This doesn't mean anything yet, though.

The McClellan Oscillator declined the third trading day in a row, while the McClellan Summation Index is already on day four of declining.

Although we reached new lows, it doesn't mean that the correction will gain speed again. When looking at the plain candle chart (we don't have that one here, I know), it actually seems like a bottom could have been reached at the LOW of the last trading day (~ 26 978). This seems to be a support level, at it will be interesting to see if it will hold. If not, the index might drop another 11-12%.

The Advance Decline Line reached a new high a couple of trading days ago, while the index itself did not. Some might say we had observed a little bullish divergence, but in this case, I am not sure if it will be of any purpose.

Let's see.