The Nikkei 225 ($NIKK) broke above wedge resistance with a surge to 14589 and extended its long-term uptrend. First, note that the long-term trend is up after the big surge from November to May. Second, this triangle represents a consolidation and the breakout signals a continuation of the uptrend. Third, notice that the Yen Index ($XJY) is breaking the triangle trend line and the Nikkei is negatively correlated with the Yen. Key support for the Nikkei is set at 13900 and a break below this level would warrant a reassessment.
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About the author:
Arthur Hill, CMT, is the Chief Technical Strategist at TrendInvestorPro.com. Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London.
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