Nikkei 225, Hang Seng 50 and KOSPI Forecast – Asian Indices Mixed but Strong

Nikkei 225 Technical Analysis

The Nikkei 225 has dropped a bit during the trading session on Thursday, but really, at this point in time, we are just digesting the massive gains after the landslide election victory over the weekend. The Japanese government is claiming to be much more pro-growth, and the Nikkei, of course, is a big winner in this environment. Short-term pullbacks should continue to be buying opportunities, and I see the 54,500 Yen level as a major floor in this market. As far as a target is concerned, we don’t really have one yet, but I think 60,000 Yen could be something that we see before it’s all said and done.

Hong Kong 50 Technical Analysis

The Hong Kong 50 or the Hang Seng 50 finds itself slightly lower during the early hours on Thursday, but it is turning around near the 27,000 level. All things being equal, this is a buy on the dip type of opportunity as far as I can tell, as we’ve been in a nice uptrend for a while, and of course, Asian indices in general have done fairly well. If we rally from here, the 28,000 level could be targeted as it was the recent swing high, and breaking above that really opens up the possibility of a much bigger move. The 50-day EMA sits at the 26,650 level as a support level right along with the 26,250 level.

KOSPI Technical Analysis

The South Korean Kospi looks very strong at the moment as we are making fresh new highs on an almost daily basis, with South Korea leading the way in Asia. This is an index you have to watch because it could be a barometer as to how everybody else performs. I like the idea of buying short-term pullbacks with the 5,000 level as a potential floor in the market. As far as a target is concerned, I suspect that 5,800 might be your next target. We are a little extended during the day, so a pullback is more likely than not to occur, but I think that also offers a lot of value in the South Korean Kospi.

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