Japan Nikkei 225 - Lowest in more than 2 years, may find support at 10,500 points

Like the Hong Kong Market, the Japan benchmark Nikkei 225 index (Nikkei) fell to a lowest of more than 2 years. The Nikkei fell 416 points or 3.5% to close at 11333 points as at 12.13 pm today. Generally investors in Asia fear the credit crunch domino effect that may take place in Asia soon following the lead from the US.

Nikkei have retraced more than 61.8% from the bullrun that starts in the year 2003. This is a very bearish situation for the Nikkei, based on Fibonacci studies. The next support level is seen based on the congestion in the year 2004, which is at 10,500 points.


Monthly Nikkei chart as at 12.12pm, 18 September 2008 using NextVIEW Advisor. Click on chart to view enlarged chart.

Commentary and Analysis by Benny Lee