Nikkei 225, Kospi and Hang Seng 50 Forecasts – Asian Indices Rally on Optimism

NIKKEI 225 Technical Analysis

The Nikkei 225 rallied a bit during the trading session today to test the 50-day EMA. The 50-day EMA, of course, is a psychologically important technical analysis figure and indicator that a lot of people will be watching.

The Nikkei 225 is also going to be reacting to how the Japanese yen moves and it is struggling. The 50,000-yen level is an area where traders will be looking at as a potential floor in the market.

The 50,000-yen level is an area that is also backed up by the 200-day EMA. So, I think short-term drops probably end up being buying opportunities.

KOSPI Technical Analysis

The KOSPI in South Korea rallied again during the session but it did give up a bulk of the gains. At this point, you could make an argument for some type of symmetrical triangle forming, and the question is, which way do we break?

The uptrend has been very strong for some time, so I still favor the upside. But in the short term, I think we need to break above 5,800 to get overly bullish.

Short-term pullbacks to 5,400 could be bought into, but if we break down below the triangle, it’s more likely than not that it opens up a drop down to the 5,000 level.

HANG SENG Technical Analysis

The Hang Seng in Hong Kong is positive as well, recapturing the 25,250 Hong Kong dollar level and making a move towards the 200-day EMA. The 200-day EMA is an indicator that a lot of people will be watching. If we can break above there, then the market is likely to go looking to the 26,250 level.

At this point, I think we are in the process of trying to bottom, but most of the markets that I am watching are in somewhat of a wait-and-see mode with a little bit of optimism, as America and Iran start to talk, it could drive down inflation worldwide.

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