⚡ Easily Trade – Apple, Microsoft, Tesla and Google Stocks – Open a FREE Account Here

      

Nikkei 225 and Hang Seng Index Outlook: Surge Amid Tech Rally and AI Optimism

BrokerReviewRegulatorsMin DepositWebsite
🥇Read ReviewASIC, FSA, CBI, BVI, FSCA, FRSA, CySEC, ISA, JFSAUSD 100Visit Broker >>
🥈Read ReviewFMA, FSAUSD 50Visit Broker >>
🥉Read ReviewFSCA, CySEC, DFSA, FSA, CMAUSD 0Visit Broker >>
4Read ReviewCySEC, MISA, FSCAUSD 5Visit Broker >>
5Read ReviewFCA, CySEC, FSCA, SCBUSD 100Visit Broker >>
6Read ReviewFCA, FINMA, FSA, ASICUSD 0Visit Broker >>
7Read ReviewCySEC, FCA, FSA, FSCA, Labuan FSAUSD 100Visit Broker >>
8Read ReviewCBCS, CySEC, FCA, FSA, FSC, FSCA, CMAUSD 10Visit Broker >>
9Read ReviewASIC, CySEC, FSCA, CMAUSD 100Visit Broker >>
10Read ReviewIFSC, FSCA, ASIC, CySECUSD 1Visit Broker >>

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.

Stock markets have given back all the gains today

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.

Nikkei (NKY) Price Chart

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

The Hang Seng Index (HANG SENG) concluded the week with a modest increase of 0.22%, closing at 16,586. This performance places the index above its pivot point of 16,357, indicating a potential for continued upward movement.

The index faces immediate resistance at 16,898, with subsequent levels at 17,336 and 17,979 potentially challenging further gains.

Hang Seng Index Price Chart

On the downside, support is found at 15,774, followed by 15,301 and 14,818, which may provide a buffer against any price retractions.

The Relative Strength Index (RSI) at 56 suggests a balanced buying interest, while the 50-Day Exponential Moving Average (EMA) at 16,351 offers underlying support, hinting at a stable buying trend around this level.

A notable downward trendline and channel visible on the daily timeframe suggest resistance could solidify near the 16,900 mark.

In summary, the Hang Seng Index exhibits bullish tendencies as long as it sustains above the $16,350 mark, pointing towards a cautiously optimistic market outlook.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
ABOUT THE AUTHOR See More
Avatar
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
Related Articles