NIKKEI 225, HANGSENG 50 and NIFTY 50 Forecasts – Asian Indices Trying to Recover, Minus India

Nikkei 225 Technical Analysis

The Nikkei 225 rallied rather significantly during the early part of the Monday session as we have bounced from the 200-day EMA. We broke above the 51,750-yen level and now it looks like the market is trying to build some type of base. I think if we can get a little bit of momentum, the Nikkei really could start to take off, perhaps to the 50-day EMA, maybe the 54,750-yen level. If we break below the 200-day EMA, that would obviously be a very negative turn of events, but right now it looks like we are fighting back.

Hang Seng 50 Technical Analysis

The Hang Seng in Hong Kong is keeping its eye on the 25,000 level, an area that we simply need to recover to get bullish again. The 50-day EMA is breaking down from here to perhaps cross below the 200-day EMA and kick off the death cross. It would not be the 1st time I’ve seen it get close and then turn right back around, as far as the death cross is concerned, because, quite frankly, it does lag. So, we’ll have to see if this plays out, but if we can recapture the 25,000 level, that would be very strong.

NIFTY 50 Technical Analysis

The Nifty 50 in India looks miserable. We are now in the 22,330 region and we are just falling off of a cliff. Business conditions in India are a major concern, but we also have to worry about energy now because of the Strait of Hormuz. India is particularly sensitive and vulnerable to this scenario, and with that, there’s no good on this chart, and quite frankly, I don’t think there should be.

Now I don’t know if you jump in and start shorting wildly because this has been a rather precipitous fall and we are approaching an area in the neighborhood of 22,000 that could offer support, but this is dead money. You are not going to need to jump in and be the 1st person to pick up stocks. The Nifty 50 is 1 of the worst charts I follow right now and it remains so. However, from oversold conditions come great bounces, so I will keep an eye on it for some type of bounce, V-shape recovery on a 2 or 3 candlestick formation, and then start to think about perhaps trying to get a small position going.