Nikkei 225 Technical Setup: Opportunities in a Volatile Range

$Nikkei 225 Index(N225.JP)$ Technical Analysis (Day + Hourly View)

Day Chart Overview

• Price structure is currently forming a series of lower highs and lower lows — indicative of a near-term downtrend.

• Immediate resistance zones are seen around 35,100 and 36,000, which were previous support zones now acting as resistance.

• Horizontal support lies around the 30,828 level, marked by a previous low.

1-Hour Chart Overview

• Recent price action shows a rebound from the 32,700 level, forming a swing low and pushing upward.

• This level 32,700 is also a 62% Fibonacci golden retracement ratio of prior swing low to swing high.

• Price is currently retracing higher after bouncing off this support level. 

Combining the two timeframes (Day + 1hr)

• Daily trend remains bearish but short-term hourly momentum suggests a retracement or bounce is underway.

• Key levels to monitor:

  Resistance: 35,100–36,000 (watch for reaction)

  Support: 32,000–30,800 (previous lows and Fib levels)

• Any strong reaction at resistance may reinforce the broader downtrend structure.

Warrant Trading for Short-Term Trading

Direction Selection Based on Structure and Timeframes

Traders observing the current rebound on the 1-hour chart may consider using a call warrant (e.g. $NKY 38000MBeCW250912(QZEW.SI)$ ) to capture the short-term bullish momentum, especially following the recent bounce from the 32,700 support level. This intraday recovery suggests some buying interest in the near term.

However, it's important to note that overhead resistance is approaching, with key levels identified around 35,100 and 36,000, based on prior price structures on the daily chart. These zones may act as barriers to further upside movement.

If the price action begins to stall or shows signs of rejection near these resistance levels, a put warrant (e.g. $NKY 28500MBePW250912(GDRW.SI)$ ) could be considered to position for a potential downside continuation. This approach aligns with the broader bearish structure observed on the higher timeframe and may allow traders to capture intraday weakness if momentum shifts.

Note: The featured call or put warrant is one of the warrants quoted on tight spreads and high liquidity. They are also trending warrants. 

DISCLAIMER

Information found in Binni Ong commentary is not an offer or solicitation to buy or sell, nor financial advice or recommendation for any investment product. She is providing education and training, and is not regulated by the Monetary Authority of Singapore or any financial regulatory body. 

This commentary piece is sponsored by Macquarie Warrants Singapore. The views expressed by Binni Ong do not represent the views of Macquarie Group, nor its affiliates.

This advertisement has not been reviewed by the Monetary Authority of Singapore.

Investment products including warrants are subject to significant investment risks, including the possible loss of the principal amount invested.

Where past performance is referred to, it is not indicative of future performance. Examples quoted in this presentation are for illustration purposes only and do not represent any investment views or strategies. Advice should be sought from a financial adviser regarding the suitability of the investment product before you commit to invest in it.