Nikkei 225 has potential to reach new YTD highs above 30715 – Credit Suisse
|Nikkei 225 has recovered back above key support at 27325/270 and may be building a bullish continuation pattern. Economists at Credit Suisse think the Japanese stock index could surge as high as 32115/20.
Potentially building a bullish continuation pattern
“We see resistance next at 28695, before the more important July high at 28850.”
“A true game changer would be a rise above the February downtrend, which is currently hovering at 29200/95 and then the recent June high at 29480 as this would suggest we are witnessing the completion of a large bullish continuation pattern to expose the 30715 YTD high and then long-term retracement resistance at 32115/20.”
“Ideally, the 200-day average currently at 28285 floors any near-term setback. Only a sustained move below the August low at 26955 though would be seen to mark a top to warn of a more concerted correction, which is not our base case.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.