Nikkei 225, Kospi and Nifty 50 Forecasts – Asian Indices Continue to Show Resilience

Nikkei 225 Technical Analysis

The Nikkei 225 has rallied a bit during the early part of Thursday, although it did find a little bit of trouble at the 59,750-yen level. If we can break above there, then we could go looking towards the 60,000-yen level, possibly even 62,000 yen.

We are in a pretty significant uptrend, but we’re also in the process of potentially forming a double top. We’ll just have to wait and see how that plays out, but with the Japanese yen being as weak as it is lately, that generally helps this export-heavy index with global sales.

Kospi Technical Analysis

The KOSPI in Korea remains in its own world, where it has been one of the best-performing stock indices by far, although we did pull back on Thursday. The 6,350-level underneath for me is a significant support level that is just waiting to happen, as it was a swing high previously.

The market is a little overstretched, so it makes sense that we might see a little bit of a pullback in the next few days, but that should end up being a nice opportunity to take advantage of the tech-heavy KOSPI in South Korea.

Nifty 50 Technical Analysis

The Nifty 50 in India is doing what it can to turn things around. It gapped lower on Thursday but turned around to fight back quite a bit. We are hanging around the 50-day EMA after a momentous bounce over the last couple of weeks.

If we can clear the 24,500 area, I think that opens up a much bigger move, although we will have to tackle, with the 200-day EMA at the same time. Getting above that 200-day EMA corrects the trend and then we start reaching towards the highs again.

If we break down below the 23,700 level, then we might have to drop to fill the gap, that means possibly going as low as 23,100.

If you’d like to know more about technical analysis and how traders use it, please visit our educational area.