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May 22, 2023
After closing at 30,800 Friday, the Nikkei gained 300 points today and hit a new record high of 31,100.
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 30,845, thereby suggesting that the Nikkei is becoming overvalued. In contrast, the Nikkei broke through the 30,929 resistance and climbed above it 157.93 points; next resistance level is at 31,049.
Technical analysis of the Nikkei price action suggests it is likely to undergo a short-term reversal amid broader bullish sentiment.
Other markets are also showing gains as Hang Seng went up by 1.17% today, and closed at 19,678. KOSPI Composite Index ascends 0.76% today and closed at 2,537.79. FTSE moves up 0.18% today and closed at 7,757.
Elsewhere, Japan Services PMI is expected tomorrow at 00:30 UTC.
The index has been trending positively for about a month. The Nikkei hit a significant low of 15.42 around 8 months ago, but has since recovered 199,700%.
