Nikkei 225 to extend the rally to 32115/20 – Credit Suisse

The Nikkei 225 has resolved its high-level consolidation higher and economists at Credit Suisse stay bullish for 32115/20 – the 78.6% retracement of the entire fall from 1989.

Key quotes

“The Nikkei has resolved its consolidation higher as expected for a break above resistance at 26745/26720 – the 61.8% retracement of the entire 1989/2008 bear market and key highs from 1990 and 1991 – and we look for an extension of the bull trend to resistance next at 32115/20, the 78.6% retracement of the 1989/2008 bear market, from which we would expect a fresh pause.” 

“Support at 26325 needs to hold to keep the immediate risk higher.”