TechnoMeter

The Nikkei 225 has made its highs for the year in the past week. Indeed, it is now loitering around peaks not seen since the end of 2015.

From such a lofty peak there’s only one question investors care about, no matter what the asset: can it stay here?
Well, the technical signs are rather mixed as you’d expect. But they’re by no means universally gloomy.
For one thing, the current thrust higher from April 17 has quite convincingly broken a notable down-channel in place since March 13. In the 21 trading sessions since that break the index has managed 13 daily gains and only seven (modest) losses on the way to current highs.



Moreover, the last time the index got up to these levels, it only stayed there for about twelve trading sessions before collapsing in exhaustion. This was back in 2015. This time it has already occupied the heights around 199800 for eight trading days. So, a weekly close around current levels and range trading into next week would be a pretty good sign for those worried that history will repeat itself.

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