Wednesday, August 25, 2010

Nikkei 225 Update

In my previous update on Nikkei 225, we observed the continuation of the down trend in the Japanese index.  Today, that down trend is even more obvious strong.  Today, Nikkei 225 finished at 8995.14, which is below the 3-time tested support level of 9072.  This is not really a good sign for the long investors.

The oscillator has shown the index is in oversold area, which means some technical rebound should be expected.  If there is indeed a technical rebound, it will be a good opportunity for people who still have Japanese shares to unload at a better price.  It will also be an opportunity for the short sellers to short the market at a better price.  The down trend in Nikkei 225 is intact.  There might be a chance for it to even test the March 2009 low.   Would it happen?  Let's wait and see.

Happy investing!

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