Nikkei 225 remains capped at 26750, but broader trend is still seen higher – Credit Suisse

In Japan, the Nikkei 225 rally stalled a while ago at 26750 – the 61.8% retracement of the entire 1989/2008 bear market – and analysts at Credit Suisse continue to look for a corrective setback from here.

Key quotes

“The Nikkei extends its expected consolidation at our 26745/50 objective – the 61.8% retracement of the entire 1989/2008 bear market – and we continue to look for a correction lower.” 

“Big picture, we view weakness as temporary, with an eventual break above 26720 seen opening the door to a move to resistance next at 32115/20, the 78.6% retracement of the 1989/2008 bear market.”

“Support for a pullback moves to 26325 initially, below which can mark a small top for a slide towards 25525/425, but this then ideally holding.”