Despite the Asian shares declining, Nikkei 225 index has made another history after surpassing its all-time high in 1989 last week. Today, for two consecutive trading days, Nikkei 225 index has been topping the charts after it surged by almost 0.7% showing a consistent bullish trend. This ongoing rally has made the Japanese stocks even more desirable for investment.

On Thursday, Nikkei 225 index set a new all-time high in over 30 years after reaching 39,098.68. Today, Nikkei 225 went up by 0.4% closing at 39,233.71. Trading was closed on Friday due to a public holiday in Tokyo.

By the looks of it, Nikkei hitting new ATH for 2 times in a row is an indication that the 40,000 mark is soon to be anticipated. Nikkei 225 index went up by more than 28% throughout last year.

According to Stephen Innes from SPI Asset Management, since yen is still weak, it’s becoming a factor for attracting foreign investors in investing in Japanese stocks. He adde d that investors were selling to lock in profits from recent gains in Chinese markets, which have rallied a bit after a month-long bearish trend. 

Meanwhile, Hang Seng index plummeted by 0.5% closing at 16,641.68, on Friday. While the Shanghai Composite went down by 0.9% closing at 2,977.02.

Although the Asian stock market is starting the week with a clear momentum, it remains volatile to a spot of profit-taking as most investors are taking a break after last week’s tech-and-AI fueled global buying frenzy.

Nikkei 225 Technical Analysis

Nikkei 225 index locks at 39,233.71 today, February 26, showing a bullish trend based on multiple technical indicators: RSI stands at 78.38 (overbought), MACD is at 991.88 (bullish), SO is at 95.83 (overbought), ROC is at 8.27 (bullish), CCI is at 129.78 (bullish), Williamson %R is at -4.37 (overbought), ATR is at 495.93 (low volatility), and ADX is at 44.19 (bullish).

Overall, this indicators suggests that Nikkei 225 is still on strong bullish trend. Traders should be cautious on potential reversal signals as the market may be due for correction. In addition, ATR suggests that market may be entering a period of consolidation. However, ADX suggests an upward trend in the near term.