Nikkei 225 saw a particularly sharp overnight fall following the announcement that Abe is resigning as PM, however, the index has just about held key support at 22670/610 to keep the Credit Suisse analyst team bias leaning higher. A break above 23380/430 is still needed to open up even more important medium-term resistances starting at 23955 and stretching up to 244090/115.
Key quotes
“The Nikkei has seen a particularly sharp overnight fall following the announcement that Abe is resigning as Prime Minister, however, the market has just about held key support at the back of the broken ‘triangle’ at 22670/610, which also now coincides with the rising 63-day average, as well as reversing from the intraday lows to close above the 22850/40 low. This maintains the bullish pattern and keeps our bias leaning higher.”
“A break above 23380/430 is still needed to reinforce this pattern and open up even more important medium-term resistances starting at 23955 and stretching up to 244090/115.”
“Support remains at 22670/610, below which would negate the ‘triangle’ to leave the market trapped within its range again, with support then seen next at 22495/55.”
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