Nikkei 225 Technical Analysis
The Nikkei 225 continues to be a choppy place to live, but it does look like we are threatening the crucial 54,750 level as resistance. A move above there could really get this market moving to the upside for a while. All things being equal, this is a market that I think will remain very noisy as there are a lot of questions asked about what is going to happen with the Japanese yen and, of course, energy supply coming from the Middle East.
Noisy, choppy, and I think we are trying to confirm a range between the 200-day EMA and the 54,750-yen level.
Kospi Technical Analysis
The KOSPI in South Korea ended up a little bit positive for the session as we continue to battle with 5,500 as a barrier. A move above there on a daily close could kick off the next wave of buying. That being said, those watching technical patterns, it is worth noting that we are, at least at the moment, looking very much like a market that is trying to form a descending triangle. A breach of 5,000 to the downside would be a very negative turn of events.
Hang Seng Technical Analysis
The Hang Seng in Hong Kong has been a little bit positive during Monday as we continue to form a basing pattern from a double bottom that we had previously put into the market near the 24,500 level. The 25,000 level for the short term seems to be offering a little bit of a floor and therefore I think a lot of people will continue to look at this as a short-term buy on the dip market.
But again, much like other Asian indices, we are going to have to worry about energy supply being disrupted in Asia, so until that overhang is removed from the market, probably cautious optimism will be about as good as it gets.
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