Nikkei 225 (NIKKEI.NDX)

Short term

Nikkei 225 shows strong development within a rising trend channel in the short term. Rising trends indicate that the market experiences positive development and that buy interest among investors is increasing. The index is moving within a rectangle formation between support at 38039 and resistance at 39441. A decisive break through one of these levels indicates the new direction for the index. The index gave a negative signal from the rectangle formation by the break down through the support at 38305. Further fall to 37050 or lower is signaled. The index is testing support at points 38000. This could give a positive reaction, but a downward breakthrough of points 38000 means a negative signal. The volume balance is positive and strengthens the index in the short term. The index is overall assessed as technically positive for the short term.

Recommendation one to six weeks: Positive

Medium term

Nikkei 225 is in a rising trend channel in the medium long term. Rising trends indicate that the market experiences positive development and that buy interest among investors is increasing. The index has broken down through support at points 39000. This predicts a further decline. Trading volume has increased substantially lately, which may be because of fundamental news. 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. The index has support at points 30800 and resistance at points 42000. The volume balance is positive and strengthens the index in the short term. Trading volume has increased substantially lately. This shows there is an increased interest for the index, possibly because of fundamental news. The index is overall assessed as technically positive for the long term.

Recommendation one to six quarters: Positive