Nikkei 225 (NIKKEI.NDX)

Short term

Nikkei 225 shows weak development in a falling trend channel in the short term. This signals increasing pessimism among investors and indicates further decline for Nikkei 225. The index has support at points 31200 and resistance at points 36800. Negative volume balance weakens the index in the short term. 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 support at points 31500 and resistance at points 37100. Volume has previously been low at price tops and high at price bottoms. Volume balance is also negative, which weakens the index and indicates increased chance of a break down. The index is overall assessed as technically slightly negative for the medium long term.

Recommendation one to six months: Weak Negative

Long term

Nikkei 225 is in a rising trend channel in the long term. This signals increasing optimism among investors and indicates continued rise. A head and shoulders formation is under development. A decisive break of the support at 32213, ideally with an increase in volume, signals a further fall. The index has support at points 30800 and resistance at points 40000. The volume balance is negative and weakens the index in the short term. 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 slightly positive for the long term.

Recommendation one to six quarters: Weak Positive