Up 18% in Less than Two Months, the Nikkei’s Ascent to 14K This Year Continues Unabated
On December 13th when the index was ~1,700 points lower, we noted in this post that the Nikkei was working on a rather important technical break-out.
In that post we suggested the following:
“…a break above line (1) would be very bullish and would help to evince our ongoing and ardent support of the thesis that this index is apt to out-perform all other global equity benchmarks over the coming decade.”
If we simply update the chart from that previous post below we can see the break-out above line (1) did indeed happen and that the result has been an 18% rally in less than two months!
Every belief we had in that previous post still applies:
With decent probability, the Nikkei could likely target 14,000 within the year, at the combo of resistance at lines (3), (4) and 61,8% Fib resistance formed b/t the 2007 highs and 2009 lows.