Nikkei 225(9239) Near Term Trend: Positive > 8.7k In the previous review I said "Since Oct 08,the Nikkei could never muster the strength to surpass the 8.7k mark on closing basis(even though in intra-week it had rallied to 9.1k-9.3k levels). As such I would persist with an range trading (8.7k-7.6k) view on the Index, within the overall structural bear market, till the bulls shows commitments > 8.7k".
On the week closing 26th Dec 08, the index closed > 8700 & braked the jinx of last10 weeks. Expect continuation of the corrective rally as long as it trades above 8860(stop). In the near term, the index is likely to trade with upward bias, in the rising parallel channel, drawn on daily chart, with target objective of 9.6k, where expect renewed selling pressure. If failed to surpass this then it may slide back to the support zone of rising parallel channel.
Overall, the current rally is part of 'corrective' structure and not a fresh bull market. So caution is warranted near 9.6k ( & then near 10k if surpassed 9.6k).
