As anticipated the Nikkei slipped below 7960, but restricted the fall to 7406, rather than retesting Oct low of 6994. For the last 4 weeks the index is moving in a tight range of 7.6k to 8.6k, keeping possibility of "double bottom" scenario, alive. It seems that the downside is now fairly protected at 7.6k, but what we need is a quick up move beyond this trading range and then the close above 9.6k for the confirmation of "reversal" and corrective rally in the next few weeks/months towards 10.5k-10.8k mark.
December 9, 2008
Holding double bottom, good times ahead...?
Nikkei 225 (8395) Near term trend: Positive
I said "the index is making confused moves, I will turn bullish only if closed > 9k; on the downside if broken 7960, it may retest October low".
As anticipated the Nikkei slipped below 7960, but restricted the fall to 7406, rather than retesting Oct low of 6994. For the last 4 weeks the index is moving in a tight range of 7.6k to 8.6k, keeping possibility of "double bottom" scenario, alive. It seems that the downside is now fairly protected at 7.6k, but what we need is a quick up move beyond this trading range and then the close above 9.6k for the confirmation of "reversal" and corrective rally in the next few weeks/months towards 10.5k-10.8k mark.
As anticipated the Nikkei slipped below 7960, but restricted the fall to 7406, rather than retesting Oct low of 6994. For the last 4 weeks the index is moving in a tight range of 7.6k to 8.6k, keeping possibility of "double bottom" scenario, alive. It seems that the downside is now fairly protected at 7.6k, but what we need is a quick up move beyond this trading range and then the close above 9.6k for the confirmation of "reversal" and corrective rally in the next few weeks/months towards 10.5k-10.8k mark.
