On the weekly chart, this pattern looks like distribution. There was allready a divergence with a false breakout, and there is the possibility of another divergence, so on the long term I think the japanesse market is going to fall.
Weekly picture here
But there's nothing holding this market to go to its multi year highs around 16000. The big resistance was at 15000, which has been the most important level for the last year. Nikkei broke this level, then tested it and rejected it.
There's a massive bullish divergence at 14000 which should have the power to push prices higher. MACD histogram is rising, price just bounced of value and the candles look bullish to me. 16000 is probably coming!
Weekly picture here
But there's nothing holding this market to go to its multi year highs around 16000. The big resistance was at 15000, which has been the most important level for the last year. Nikkei broke this level, then tested it and rejected it.
There's a massive bullish divergence at 14000 which should have the power to push prices higher. MACD histogram is rising, price just bounced of value and the candles look bullish to me. 16000 is probably coming!
