Nikkei 225 (NIKKEI.NDX)

Short term

Nikkei 225 is in a falling trend channel in the short term. This signals increasing pessimism among investors and indicates further decline for Nikkei 225. The price has had a strong fall after the negative signal from the rectangle formation at the break down through the support at 38459. The objective at 37201 is now met, but the formation signals further development in the same direction. The index has support at points 36800 and resistance at points 38000. The index is overall assessed as technically negative for the short term.

Recommendation one to six weeks: Negative

Medium term

Nikkei 225 is within an approximate horizontal trend channel in the medium long term. This indicates that investors are uncertain and waiting for signals of further direction. A break upwards will be a positive signal, while a break downwards will be a negative signal. The index has received a negative signal from the moving average indicator, thus signaling a continued fall. The index is testing support at points 37100. This could give a positive reaction, but a downward breakthrough of points 37100 means a negative signal. Volume tops and volume bottoms correspond badly with tops and bottoms in the price. This weakens the index and indicates increased chance of a break down. The index is overall assessed as technically negative for the medium long term.

Recommendation one to six months: Negative

Long term

Nikkei 225 is in a rising trend channel in the long term. This shows that investors over time have bought the index at higher prices and indicates good development for the market. A head and shoulders formation is under development. A decisive break of the support at 32143, ideally with an increase in volume, signals a further fall. The index has support at points 30800 and resistance at points 40000. Trading volume has increased substantially lately, which may be because of fundamental news. The RSI curve shows a falling trend, which is an early signal of a possible trend reversal downwards for the price as well. The index is overall assessed as technically positive for the long term.

Recommendation one to six quarters: Positive