KOSPI Nikkei 225 Hang Seng 50 – Asian Indices Perk Up on Thursday

KOSPI

The South Korean KOSPI has risen quite nicely during the trading session here on Thursday as the 5,000 area has offered support during the Wednesday session, which also happens to have the 50-day EMA sitting right there as well.

KOSPI daily candlestick chart showing a rebound from the 5,000 support zone and the 50-day EMA. Source: TradingView.

5,000 Support Keeps the Rebound Thesis Alive

With that being said, I think it makes a certain amount of sense that we get a little bit of a relief rally after the massive sell-off that we had seen for a couple of days. Over the longer term, we are still in a significantly bullish market at the moment, and I do think this move makes a certain amount of sense, but we may have to pull back a little bit and start buying again in order to build up the necessary momentum to reach the highs.

If we were to break down below the 4,900 level, then I believe we could drop all the way back down to 4,200. So, keep an eye on South Korea.

NIKKEI 225

The Nikkei 225 has initially pulled back but it found support at the 54,750 level to turn things around yet again. Ultimately, the 50-day EMA looks as if it is going to offer support and if we were to break down below the 53,750 level, then it could open up a drop down to the 51,750 level after that.

NIKKEI 225 daily candlestick chart showing support near 54,750 and the 50-day EMA. Source: TradingView.

54,750 Is the Key Floor for the Nikkei 225

I do think that the Nikkei 225 continues to be very bullish, but I also recognize that maybe we need to grind a little bit to work off some of that fear from the last couple of days that had entered the market. I do believe this is a buy on the dip opportunity.

HANG SENG

The Hang Seng has dropped a bit during the trading session in Hong Kong with the 25,000-level underneath offering significant support. We are sitting just below the crucial 200-day EMA and that might be a little bit of a barrier.

Hang Seng daily candlestick chart showing support near 25,000 and resistance around the 200-day EMA. Source: TradingView.

Hang Seng Needs a Break Above the 200-Day EMA

We’ve seen it offer some resistance over the last 2 trading sessions, but if we can break above there, it could open up a move to the 26,250 level. Anything above that level then opens up the 27,000 level.

Breaking below the 25,000 level on a daily close could be a very negative sign and could send the Hang Seng much lower. Ultimately, this looks like a buy on the dips opportunity as well. Keep in mind, the Hang Seng was not as stretched as the other 2 indices, so it may not have to work off as much to attract value hunting.