NIKKEI, KOSPI and HANG SENG Forecasts – Asia Looks Soft on Thursday

NIKKEI 225 Technical Analysis

The Nikkei 225 tried to rally a bit in the early part of the session but has rolled over as we continue to see a bit of an overhang on global indices.

Mostly to do with the war and the headlines out there that a lot of traders will be watching from Iran, and you must keep in mind that Japan is particularly vulnerable to this due to the fact that it imports pretty much all of its energy.

With that being the case, you are looking at an index. And a bunch of companies that are truly at the mercy of what happens with global supply chains. Currently, it looks like the 51,750 yen level is your floor. Whether or not we break down below there is a completely different question. It does look like we are at least trying to fight back.

KOSPI Technical Analysis

The KOSPI in South Korea gapped lower to kick off the trading session, filled that gap and then rolled over to drop again. So, really, at this point, it looks like a market that is probably in the midst of pulling back a little bit. We are sitting on top of previous resistance, which should now be supported, so we will see how that plays out. We are still very much in a significant uptrend, and if there is any risk appetite reentering the global markets in general, the KOSPI will be one of the first places to react in my opinion.

HANG SENG Technical Analysis

The Hang Seng in Hong Kong ended up being pretty noisy during the session. It rallied to reach the 200-day EMA only to roll over and show signs of exhaustion again. All things being equal, I think we are still consolidating with the 25,000-level underneath as a floor in the market, with the 26,250 level above being resistant.

We are currently hanging around the 200-day EMA, so it does make a certain amount of sense that we remain a little bit noisy and choppy here. I do not really have much momentum on my chart to tell me I should be short or long. I think what we are looking at is a continued rangebound play in Hong Kong.

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