Nikkei 225, Kospi and Nifty 50 Forecasts – Asia has Choppy Session to Kick Off Week

Nikkei 225 Technical Analysis

The Nikkei 225 in Japan continues to hang around the 58,800 level, an area that has been important for a while extending all the way to the 60,000 yen level, which is the basis of a potential double high. Really at this point, I think there’s plenty of momentum to the upside.

I don’t think this is a market that you’re looking to short, especially if we get any type of good news coming out of the Middle East. This is almost solely driven on risk sentiment at the moment. So, any good news since this is above 60,000, if we get a pullback, I’ll be watching 56,000 for support.

Kospi Technical Analysis

The KOSPI in South Korea continues to be very noisy and choppy but during the session on Monday we’ve seen pretty much a flat market which is somewhat impressive. We did gain 0.4% by the time it was all said and done but we went in both directions.

The KOSPI has been one of the better players for some time. A pullback at this point opens up a potential buying opportunity at the 6,000 level. To the upside, the 6,350 level being broken is bullish as well.

Nifty 50 Technical Analysis

Finally, in India we have the Nifty 50 hanging around the 24,450 level again. This is an area that’s been resistant several days in a row and now we are sitting just above the 50-day EMA.

If we can break above the top of the candlestick for the trading session, it opens up the possibility of a move to the 200-day EMA. If we turn around and break down below the lows of the last couple of days, that could open up a drop towards 23,750. This has been one of the more bearish indices in Asia until recently, so do keep that in mind.

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