Asian Markets

Nikkei And ASX Reversals Run Into Resistance; But Can It Waylay Such An Aggressive Move?

After a quite end to last week, the Nikkei has picked its pace back up for Monday’s session with an advance that has cleared another technical hurdle in trying to establish a long-term reversal: the 100-day SMA. This revision to a very steep mean however does not mark the turning point in the market’s ultimate direction. Instead, for matters of long-term trend, the wide wedge formation (now with a trendline hovering at 9,000) will stand in as the higher time frame gauge for price action. Short-term, however, we have conflict overhead at the 50% Fib retracement of the ‘mouth’ of the aforementioned wedge at 8,295. We have seen congestion in this area in the past; so the market will no doubt sow some respect for this level – though will it be enough to truly stall the market’s burgeoning bull trend.