Nikkei 225 Index: Reaching 29-year high

Nikkei 225 Index reaches 29-year high, what's the next level?

New Highs 4

Japan's Nikkei 225 Index jumped 50% from March low. In fact, the index broke above the high of 2019, reaching the 29-year high. In fact, the index has soared 9% since November, lifted by the rise of the global market in the U.S. presidential election and progress of the coronavirus vaccines.

On the economic front, Jibun Bank Japan Services PMI rose to 47.7 in October from 46.9, while manufacturing PMI bounced to 48.7 from 47.7.

From a technical point of view, the index broke above the ascending triangle pattern, indicating the resumption of the previous bullish trend. The relative strength index broke above its overbought level at 70, suggesting the extreme upside momentum for the index prices.

Bullish readers could set the support level at 23900, while resistance levels would be located at 25500 and 26700.

Source: GAIN Capital, TradingView

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