Nikkei 225 Technical Analysis: Can Impressive Gains Stick?

Nikkei 225 Technical Analysis Talking Points:

  • The Nikkei 225 is back within sight of this year’s peaks
  • However, its ascent has been quite rapid and caution may be warranted
  • Some consolidation is probably required in the near term

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Helped by a stunning rise on September 18, the Nikkei 225 has smashed through the top of its previous uptrend channel and is now back at highs we haven’t seen since January 24, which is where the peaks of 2018 still hover.

Nikkei 225 Technical Analysis: Can Impressive Gains Stick?

Perhaps unsurprisingly however index is starting to look a little overstretched to the upside at current levels. Its Relative Strength Index loiters at a modestly worrying 73, just above the 70 point above which things can start to look a little overbought.

The simple moving averages at 20-, 50- and 100 days remain in chronological order, but they are all now some way below the market.

What all this suggests is that the next

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