Nikkei dips 0.1 pct, charts point to further fall

* Nikkei’s earlier bounce falters late in session

* 25-day moving average around 11,050 resistance for now

* Isuzu climbs after raising earnings estimate

By Masayuki Kitano

TOKYO, April 20 (BestGrowthStock) – Japan’s Nikkei average dipped
0.1 percent on Tuesday, a day after its biggest percentage loss
in two months, with technical charts suggesting it may pull back
further in the wake of its recent rally to an 18-month high.

The Nikkei spent much of the day in positive territory,
initially getting some respite after its 1.7 percent slide the
previous day.

But that rise came in low trading volume, in a sign that the
bounce lacked momentum, and the benchmark index later gave up all
of its gains.

“There was some selling in futures in 500-contract lots …
That helped drag the Nikkei into negative territory,” said Hideki
Horikawa, senior adviser at Himawari Securities’ investment
advisory division.

The benchmark Nikkei average (.N225: ) dipped 8.09 points to
10,900.68.

The broader Topix index (.TOPX: ) edged up 0.1 percent to
972.11.

The Nikkei dropped below its 25-day moving average at around
11,050 this week, pointing to the possibility of a further
correction in the near-term, especially after MACD, another
technical indicator, turned bearish last week.

Initial support lies near 10,800, roughly the 38.2 percent
retracement of a two-month rally that started in early February
and pushed the Nikkei up to an 18-month peak of 11,408.17 in
early April. Below that the 50 percent retracement of that same
rise lies roughly around 10,600.

Despite the Nikkei’s fall, carmakers rose, with Isuzu Motors
(7202.T: ) surging 4.6 percent to 274 yen following an outlook hike
and Suzuki Motor (7269.T: ) gaining 0.9 percent to 1,946 yen
following a report that it plans to boost output in India.
[ID:nSGE63I0LU]
(Additional reporting by Elaine Lies; Editing by Joseph Radford)

Nikkei dips 0.1 pct, charts point to further fall