Nikkei chart looks like Mount Fuji

I blogged on Japan exactly 2 years ago, noting a break in the downtrend at that time: https://www.valuetrend.ca/i-think-im-turning-japanese/

japan

 

After a breakout in early 2013, the stock index, via the iShares (EWJ) ETF, moved higher and ended up moving sideways for the balance of the year.

We’ve recently witnessed another nice breakout for the iShares Japanese ETF after its 2 year (2013, 2014) consolidation. The chart is as bullish a chart as one can find. In the near-term, you will note overbought MACD levels, (but not yet rounding over) along with similar conditions on some of the shorter termed momentum indicators (stochastics, RSI). This might suggest a pullback in the coming days or weeks. I’d think that a pullback target might be somewhere between $12.65 (200 day MA) and $12.90 on this ETF. Moneyflow looks positive both short and long term (not shown), and relative strength vs the S&P500 is positive.

 

Japan looks like a good candidate for some capital gains going forward, and a pullback might be used as a buying opportunity

 

For those who missed it, I was on BNN on Monday. View it here.

 

 

2 Comments

  • Would you continue to hold Microsoft? Do you think the news will be good enough that we can continue holding? Do you think that it will be very difficult for the stock to go over $50? Thanks.

    Reply
    • We sold, for what that’s worth
      We are reducing beta and MSFT has plenty of that!

      Reply

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