Nikkei 225 may rise to 42400 - 45000

Pivot

33700

Our preference

Long positions above 33700 with targets at 42400 & 45000 in extension.

Alternative scenario

Below 33700 look for further downside with 31200 & 2900 as targets.

Comment

The RSI calls for a bounce. The candlestick pattern validated the morning star, suggesting the bullish reversal signal.

Supports and resistances

47400 ***

45000 ***

42400 ***

37900 Last

33700 ***

31200 ***

2900 ***

Number of asterisks represents the strength of support and resistance levels.