A tad more upside but…
The Japan’s Topix Index (Topix) is currently testing its 200-day SMA for the third time in a span of 2 weeks.
Can the near term rally continue on further?
The move from the 1371 low has been trading within parallel lines and is close to its 62%FR of the previous Aug-Sep fall.
The 24th August gap of 1542-1573 is not ‘properly’ filled, suggesting that the index might still attempt to fill up this gap in the near term.
It may even rally to fill up the 21st August gap of 1594-1623 as long as the immediate support at 1523 holds.
A break below this support would signal that a correction may be underway, targeting its SMA. If selling is persistent, then a fall below 1462 would suggest that a retest of the September low of 1371 is next on the cards.
Longer term, 1371 must hold if the bullish run from the 2012 low is to continue
. Otherwise, a multiweek correction may be taking place. Higher for now but watch the key support levels. (Read Report)
Source : CIMB Research
Labels: Technical Analysis