Nikkei Analysis June 2015 (D)
Created on Monday, 01 June 2015 01:24
Written by Austin Galt
The Japanese stock index has hit new highs since the last report which was looking for a lower high which never eventuated. So while the long term picture remains virtually unchanged, the short term one has been altered. Let’s take a quick look using the daily chart.
NIKKEI DAILY CHART
The Bollinger Bans show price hit the upper band as has kept on with the uptrend as it travels alongside the upper band. Price has moved ever so slightly away but I favour one last spurt upwards as it tries to regain the upper band. Time will tell if the attempt is futile.
The Stochastic indicator is bearish while the MACD is bullish but with the averages seemingly coming back together. A move to new highs would not surprise here.
The move to new highs puts a 5 point broadening top formation in play with price looking to put in the point 5 high at any time now.
Once the final top is in place then we can review the long term picture again with only slight adjustments necessary.