Japan’s Nikkei 225 index momentarily breached the 40,000 mark, buoyed by a tech-led rally and AI optimism, echoing gains in U.S. markets. The resurgence in tech stocks, particularly those in the semiconductor sector, propelled the Nikkei upwards, with significant contributions from Renesas Electronics and Tokyo Electron among others.

Meanwhile, the NASDAQ’s record high, spurred by NVIDIA’s performance, highlighted the global tech and AI enthusiasm.

This optimism, coupled with stable inflation data, fuels speculation of an impending Fed rate cut, influencing a positive outlook for the Nikkei 225 and potentially the Hang Seng Index in their weekly forecasts.

Nikkei (NKY) Price Forecast: Technical Outlook

The Nikkei (NKY) finished the week with a notable ascent, registering a 2.08% increase to close at 40,187. This surge places the NKY comfortably above its pivot point of 39,573, hinting at continued bullish momentum.

The index now encounters immediate resistance at 40,286, with further barriers at 41,015 and 41,714 that could challenge its upward trajectory.

Conversely, support levels are established at 38,902, 38,130, and 37,446, serving as potential cushions against any downward corrections. The Relative Strength Index (RSI) stands at a high 76, suggesting robust buying interest that borders on overbought territory.

Additionally, the 50-Day Exponential Moving Average (EMA) at 36,726 reinforces the bullish sentiment, indicating sustained upward momentum. The presence of an upward channel in the daily timeframe further supports the likelihood of a continued buying trend.

In conclusion, the NKY exhibits a strong bullish trend as long as it remains above the critical level of 39,573, suggesting potential for further gains in the market.

Hang Seng Index (HANG SENG) Price Forecast: Technical Outlook