Nikkei 225, HangSeng 50 and KOSPI Forecasts – Asian Indices Mixed on Tuesday

NIKKEI 225 Technical Analysis

The Japanese Nikkei 225 is positive by over 1% during the trading session on Tuesday as Japan has come back to work. It looks very much like a market that is in the midst of forming a bullish pennant. The 56,500-yen level continues to be an area of support, and I do think it’s probably only a matter of time before we break out.

In fact, the measured move is for roughly 60,000 yen and I really don’t see anything on this chart that tells me we are not going to get there. The Japanese government has stressed the idea of helping the limping economy along and of course, as usual, stock traders are jumping in and trying to take advantage of that ahead of time.

HANG SENG Technical Analysis

The Hang Seng in Hong Kong has been negative during the trading session by contrast, but we are in an area of consolidation with the 26,250 Hong Kong dollar level being support. We are right around the 50-day EMA as well and I think it’s probably only a matter of time before we bounce, if for no other reason than the fact that the rest of Asia will drag it right along with them.

I don’t necessarily think that the Hang Seng is the place to be right now. It looks very choppy and sideways, and I think it’s a good look into how Chinese companies in general are faring. I do think that there is a bit of a mixed market here. I think that remains the case, so the Hang Seng might be positive, but it may be the weakest in the region, at least at the moment of the majors.

KOSPI Technical Analysis

The KOSPI in Korea continues to be just an absolute massive juggernaut of a bullish run, as we are now threatening the 6,000 Korean won area. This is a market that I think anytime it pulls back, there should be plenty of buyers looking to get involved, and the 5,500 level seems to be the support level at the moment.

That being said, we are a little overdone, so let’s be realistic about this. As we approach the 6,000 level, we might get a little bit of a pullback, which should, by all accounts and all looks at the chart, end up being a buying opportunity before it’s said and done.