Topix Technical Analysis: Index hits lowest since June 2017 after flag breakdown

• Japan’s Topix index fell to 1,572 on Monday – the lowest level since June 1, 2017 – having suffered a bear flag breakdown on Monday.
• The bearish pattern has opened the doors for a drop below 1,400 (target as per the measured height method).
• The 50-, 100-, and 200-day moving averages (MA) are trending south and located one below the other in favor of the bears.
• The 14-day relative strength index (RSI) of 34 indicates there is scope for further slide below 1,500.

Daily Chart