NIKKEI, TSX and TASE Forecasts – Global Indices All Have the Same Worries

Nikkei 225 Technical Analysis

Nikkei 225 is negative during the Thursday session, shedding about 1.5% as we continue to see a general risk-off behavior around the world. With that being said, I think it is very important to understand that we are still in an area that is very range bound between 55,000 and 51,500 or so, and I do think that we continue to bang around. This is a solely risk-based market, and what is really driving things will be whether or not there is a free flow of oil and how expensive oil gets.

Remember, Japan is a major exporter, so this has a direct influence on many of its big corporations. Ultimately the market is still well above the 200-day EMA. I do think that a drop from here and a bounce could be a buying opportunity but that might be a couple of days down the road.

TSX Technical Analysis

In Toronto, we see the TSX looking somewhat healthy but likely to pull back a bit during the session. The 32,000 area and the 31,000 area both offer a bit of support. Remember, this is a very resource-heavy index. I think you have to believe that Toronto’s index will get a little bit of a buffer from financial and hard materials.

Inflation brings in more money for some commodities. Oil, of course, rallying has helped, but there are other minerals and mining operations in Canada that will fare well. The question is, will the “risk off” attitude continue to weigh this index down? I think it probably does in the short term, but this is one I am looking to buy on dips.

TASE Technical Analysis

Tel Aviv looks like it is going to drop for the session. Somewhere around 14,000 shekels, we have an area of support, but you technical chartists will be looking at this and seeing a potential head and shoulders pattern. If that ends up being the case, we could find ourselves testing the 200-day EMA or maybe a little bit above there near the 11,000 area.

The 50-day EMA sits right there at 14,000 as well, so that it could provide some support. The TA 35 has been volatile but resilient, seeing some bottom fishing in the real estate and biomedical names out there despite the fact that the conflict is continuing. This is one that I think would definitely benefit from a ceasefire. In the meantime, watch that 14,000 level because it becomes important every time we get close to it.