To The Moon

Yesterday, the $Nikkei 225 Index(N225.JP)$ made market headlines with a steep 4% loss in a single session. Nevertheless, market technician Binni Ong believes that the Nikkei’s broader uptrend structure remains intact notwithstanding the sharpness of yesterday’s index fall.

👩‍🏫Binni provides the various key levels of support and resistance to look out for in Nikkei225, as well as the trading opportunities using structured warrants: https://warrants.com.sg/marketnews/highlight/todayhighlight/7961

*This article is paid for by Macquarie Warrants Singapore. Binni’s view does not represent that of Macquarie’s

Nikkei 225 futures fell sharply on 15 October, down about 4% in a single session. Despite the size of the move, the broader uptrend remains intact, and price has landed squarely on a key support zone.

①  Daily Chart: Price at Channel and Horizontal Support

Nikkei 225 is currently parked at support provided by both the rising channel and horizontal support/resistance around 63,000–64,000. This zone has acted as support on prior pullbacks and now coincides with the lower boundary of the ascending channel that has guided the index higher.Following the recent move down, immediate resistance has shifted lower to around 67,000–67,500 — the zone price was consolidating in before the drop.Despite the sharpness of the 15 October decline, the broader trend structure remains up, as long as the current support zone holds.

②  Deeper Support and the Level That Would Change the Picture

Below the current zone, the next support is around 59,700. This level also sits close to where the 200-day moving average currently stands, at approximately 62,000.A break below 59,700 would mark a more significant shift — at that point, the 200-day moving average would be decisively broken, and price action would begin to resemble a reversal pattern rather than a pullback within an uptrend. Until then, as long as the support zone continues to hold, the structure stays consistent with an uptrend.

Using Structured Warrants to Trade This Setup

A call warrant gains in value when Nikkei 225 rises; a put warrant gains when it falls.

Bullish — If the 63,000–64,000 Support Zone Holds

A trader who believes the current support zone will hold, keeping the broader uptrend intact and price eventually working back toward the 67,000–67,500 resistance zone, might consider a call warrant as one way to express that view. For example, trending call warrant $NKY 78000MBeCW270312(QZQW.SI)$ https://warrants.com.sg/tools/livematrix/QZQW

Bearish — If Support Fails and 59,700 Comes Into Play

A trader who believes the current support zone will give way, with price extending toward the next support near 59,700 and the 200-day moving average breaking down in the process, might consider a put warrant as one way to express that view. For example, trending put warrant $NKY 57000MBePW270312(VT9W.SI)$ https://warrants.com.sg/tools/livematrix/VT9W

Note: The featured warrants are quoted with tight spreads and high liquidity. They are also known as trending warrants.​​​​​​​

Structured warrants are short-term trading instruments that magnify both gains and losses.

Their value is affected by the underlying price, time to expiry, and implied volatility.

DISCLAIMER

Information found in Binni Ong’s commentary is not an offer or solicitation to buy or sell, nor financial advice or recommendation for any investment product. Binni Ong is providing education and training, and is not regulated by the Monetary Authority of Singapore or any financial regulatory body.This commentary piece is paid for by Macquarie Warrants Singapore. The views expressed by Binni Ong does 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.