REVIEW
Nikkei continues to push higher. Last week was no exception as the index showed some moderate gains. Certainly, Nikkei continues this move in tandem with the other big global indices that are also moving north.
OUTLOOK (SCENARIO A / B)
We can see that last Friday was a very important day for Nikkei, as it finally made a break through the strong level of resistance at around 22650 and finished off the week in the positive zone. This is a bullish sign for the index and we could see the bulls taking Nikkei to higher levels at 23000 or slightly higher at 23100, a level that acted as a strong support on the last days of January.
Alternatively, if Nikkei moves back below the 22500 level, then this could interest the bears in jumping back in to pull the index towards the 22330 mark first and if that area won’t hold, then the index could end up moving lower towards the 22070 level, or even the psychological 22000 barrier.
Nikkei continues to push higher. Last week was no exception as the index showed some moderate gains. Certainly, Nikkei continues this move in tandem with the other big global indices that are also moving north.
OUTLOOK (SCENARIO A / B)
We can see that last Friday was a very important day for Nikkei, as it finally made a break through the strong level of resistance at around 22650 and finished off the week in the positive zone. This is a bullish sign for the index and we could see the bulls taking Nikkei to higher levels at 23000 or slightly higher at 23100, a level that acted as a strong support on the last days of January.
Alternatively, if Nikkei moves back below the 22500 level, then this could interest the bears in jumping back in to pull the index towards the 22330 mark first and if that area won’t hold, then the index could end up moving lower towards the 22070 level, or even the psychological 22000 barrier.