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June 12, 2023
A quick look at today: after closing at 32,265 the day before, the Nikkei maintained a strong bullish bias that helped the index close higher at 32,434 today. However, market bears ensured the the Nikkei topped out at 32,518 and that by the end of the session, the market had marked out a distinct 32,281 to 32,518 range.
The MACD is significantly above its signal line, which suggests the market is running out of bullish momentum and could revert to a negative outlook as bears regain control. Bollinger Band® analysis indicates that current price action is approaching the upper band at 32,900, thereby suggesting that the Nikkei is becoming overvalued. After reaching the known resistance zone beginning at 32,527, the Nikkei price action retreated approximately 92.68 points. In contrast, price action remains constrained around the key Fibonacci level of 32,500 currently serving as resistance
Technical analysis suggests there could be an imminent reversal for the Nikkei.
The Nikkei shows positive signs, other assets are also on par: DAX is trading around 16,082 after ending today's session at 15,950 (up 0.83% today). CAC rises 0.63% today and closed at 7,213. ASX 200 is trading around 7,122.5 after ending today's session at 7,099.7 (up 0.32% today).
Furthermore, the market is looking at Japan BSI Large Manufacturing Conditions (Q2) is scheduled for today at 23:50 UTC.
The index has been trending positively for about 2 months. The Nikkei is up 209,142% from the significant low of 15.42 it hit 8 months ago.
