The Japanese Stocks indicated by Nikkei 225 continue its bullish path on the daily chart.
As per my earlier analysis in last week's article (Nikkei Coiling), the Japan 225 Index reversed upwards from its short term lows of 19181, reached mid-last week. It is currently trading at yearly highs of 19644.
Global stocks are doing great this year and so are the Asian stocks. We look here at possible scenarios ahead for Nikkei Index. Has the price of basket Index gathered sufficient strength to push itself further high? Or are the recent highs temporary?
For this, let's take a closer look at long term performance on daily chart.
Price has been recently converging into a channel formation towards the highs reached post US-election last year in November. There is a high possibility of break-out from here. A break-out from current levels will take $NKY towards 20,000 psychological level reached in late 2015. 20,038 level reached on 30th Nov 2015, will be the next target. We can see prices here in next few weeks if not next few days.
On the flip-side, NKY could continue with its wedge formation for a further while. Some peaks and troughs swings are likely on daily chart, before price decides on its next course of action. High or low. Immediate support remains around 19250 - 19300 area.
Some intra-day and mid-term trading strategies can be devised accordingly. Overall, it remains to be seen for global stocks, whether the 2017 highs are here to stay.