Nikkei 225 to surge higher above 30000 towards the 32120 resistance – Credit Suisse

Japan continues to perform strongly on an absolute basis, with the Nikkei now confirming a large bullish continuation pattern, suggesting further strength is likely, as reported by the Credit Suisse analyst team.

Further strength is likely

“We are now approaching the 30000 psychological resistance; however, we stay biased higher, with resistance seen next at 30715, the previous February high, where a consolidation might occur.” 

“Bigger picture, we see scope for an eventual move to long-term retracement resistance at 32115/20, which coincides almost exactly with the ‘measured pattern objective’.”

“The Nikkei now ideally remains above its 29480 June high. Below we would then expect the already distant 200-day average, currently at 28365, to floor the market at the very latest.”

“MACD momentum has turned freshly higher and confirms the recent strength within the Japanese equity market.”