Nikkei to challenge the long-term resistance at 23935/24115 – Credit Suisse

The Nikkei 225 has surged higher after holding key support at 22880/50 to maintain its bull “triangle” and analysts at Credit Suisse look for a challenge on long-term resistance at 23935/24115.

Key quotes

“A strong start to the week for the Nikkei with the market holding well above key support from its recent low and 63-day average at 22880/50 to maintain its bull ‘triangle’, with the spotlight now back on resistance from the recent highs at 23580/90.” 

“Above 23580/90 should clear the way for a challenge on longterm resistance, starting at 23935 and stretching all the way up to 24115 – the 2019 highs and high from the beginning of this year and the long-term downtrend from October 2018. Whilst we would expect fresh sellers here, a break would raise the prospect we are seeing a more important longer-term change of trend higher.” 

“Support at 2330/05 ideally holds to keep the immediate risk higher. Below can see a fall back to 23040, but only below 22880/50 would see the bull ‘triangle’ negated.”