Nikkei clears a cluster of major resistances to mark a significant break higher – Credit Suisse

Nikkei 225 has cleared a cluster of major resistances to mark an important bullish breakout with next resistance seen at 26745, economists at Credit Suisse apprise.

Key quotes

“The Nikkei has surged higher for a break above a cluster of major resistances, starting at the downtrend from October 2018 and stretching up to the 2018 high at 24450. This sees our outlook turn bullish with resistance next at 26745/50 – the 61.8% retracement of the entire 1989/2008 bear market. With price resistance just above at 27250/70 – we look for this to then cap at first for a fresh consolidation phase. A direct break though would see resistance next at 32115/20.”

“Support moves to 23925/05 initially, with 22950 ideally holding to keep the immediate risk higher.”