Nikkei 225, Kospi, Hang Seng 50 Forecasts – Asian Indices Bouncing from Initial Selling

Nikkei Technical Analysis

The Nikkei 225 initially fell during the early part of the session on Wednesday, reaching towards the 50-day EMA, but then turned around to show pretty significant bullish pressure. By bouncing the way it has, it looks like we are trying to turn things around and form a bit of a hammer.

This was an area that I think continues to see a lot of reaction near the 59,000-yen level, so bouncing from here and the 50-day EMA makes quite a bit of sense. If rates continue to drop in the United States and Japan, that could help the Nikkei via the way the Japanese yen will behave. Furthermore, you have to keep in mind that this is an index that desperately needs to see some type of momentum jump back in because we had such a strong move from the end of March. I do think we get that eventually.

Kospi Technical Analysis

The Kospi in South Korea has fallen towards the 7,000 level only to turn around and bounce.

I think ultimately, this is a market that probably tries to get back to the 8,000 level. If we break down below the 7,000 level, I think then you will start to look at the 6,500 level, basically where the 50-day EMA is.

Again though, if rates start to drop around the world, that helps the Kospi in a big way because it is so involved in the artificial intelligence trade and, of course, microchips, things like that. I am bullish and I do think 7,000 makes sense as support.

Hang Seng 50 Technical Analysis

The Hang Seng 50 has dropped a bit, only to turn around and basically get back to where we started.

We are sitting just below the 200-day EMA. I think this is a market that we go back and forth. If we break above the high from the previous session on Tuesday, that could open up the possibility of a move to the 50-day EMA, possibly even the 26,250 level.

If we were to break down below the 25,500 level, it could send this market down to the 25,000 level, but right now, I think we have a situation where we’re just waiting to see where the next impulsive candle pops up.