EQUITYOPPORTUNITY

Thursday, January 16, 2020

The Nikkei Index has a fair shot at 27,000-28,000 within a year


A long downtrend line since the bursting & unraveling of the infamous  bubble economy, accentuated by the double H & S top in 1987-1991 was finally broken on the upside in 2014 and was tested in 2016 at the height of the Brexit uncertainty.

The current uptrend line(in green)was tested in Dec '18 & retested in Aug '19 and, although there is  no guarantee of a triple top to be completed in '20, the probability is low because of the greater likelihood of an enormous reverse H & S that ground out hundreds of thousands of companies & millions of Japanese economic participants from 1992 to 2012.

I believe the dollar/yen exchange rate as shown in the chart below will resolve itself to the upside(green arrow), giving impetus to the recovery that can potentially sustain the Nikkei's rise.

Thursday, January 09, 2020

Potential bullish pennant in KLCI & cup & handle in Nikkei

Plus the latter has not violated its uptrend line in place since late 2012( in green).

Two of my Japanese stocks show net paper gains after (hefty) commissions!