The Nikkei Stock Average extended its gains sharply and recovered to the ¥60,000 range. It maintained the same bullish-candle momentum as the previous day and closed above the 5-day moving average.
The Nikkei Stock Average extended its gains sharply and ended trading back in the ¥60,000 range. It formed a bullish candle with momentum comparable to the previous day, but during the day its upside was capped by the conversion line of the Ichimoku Cloud. The closing level was above the 5-day moving average.
Meanwhile, the 9-day RSI rose from 34.5% to 37.9%, and a technical rebound is said to have occurred around the timing of a twist in the cloud. The situation in which a price-range correction from the high reached in early October continues remains in place.
Potential upside targets include ¥61,000, the 10-day moving average and the 200-day moving average (¥62,020), while ¥63,000, ¥64,000 and the high of ¥64,831 are also in focus. Potential downside targets include ¥60,000, ¥59,000, ¥58,000, the 11/6 low of ¥56,745, ¥56,000 and ¥55,000.