Kospi, Nikkei 225 and Hang Seng 50 Forecasts – Asian Indices Continue to Look Strong Overall

Kospi (S. Korea) Technical Analysis

The KOSPI in South Korea has shown itself to be very resilient, as even though we did pull back just a bit in the early part of the trading session, we’ve seen the market turn around and show signs of life. The market continues to see a lot of upward pressure in South Korea, and it has been a leader for some time, so I continue to believe that this market will go looking towards the 6,800 level. Short-term pullbacks are buying opportunitie,s with the 6,000 level being your floor at the moment.

Nikkei 225 (Japan) Technical Analysis

The Nikkei 225 has rallied quite nicely and is approaching its highs. I don’t see anything other than a buy on the dip opportunity here, or maybe buying the breakout if we can get above the 60,150-yen level. The 58,800 level is significant support, and I do think it continues to be a place that we have to watch very closely, as it has proven itself a few times already.

Hang Seng 50 (Hong Kong) Technical Analysis

The Hang Seng in Hong Kong initially fell but turned around to show signs of life and now it looks like we’re going to try to break above the 26,250 level and go looking to the 26,600 level. This is probably more of a grind to the upside but certainly looks like there is a lot of interest right around that 50-day EMA as well as the 200-day EMA. Ultimately, I have no interest in trying to short this market I do think that given enough time we do break out to the upside, as Hong Kong will play “catch up” with the others.

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