Nikkei 225 May Climb Above 10,300 After Double Bottom: Technical Analysis

Japan’s Nikkei 225 Stock Average may surpass 10,300 after its chart formed a so-called double bottom, according to Mizuho Securities Co.

The Nikkei 225 fell to as low as 9,395.29 on May 27 and rebounded to as high as 9,962.42 on June 4 before sliding to 9,378.23 on June 9. As the average exceeded the June 4 high today, it formed a double bottom, suggesting a further advance, said Yutaka Miura, a senior technical analyst at Tokyo-based Mizuho.

“This double bottom is unusually clear and should be fairly valid,” he said. “For the Nikkei, 10,000 is a psychological resistance line. After exceeding that level, the average is gaining upward momentum and we can expect it to reach the 200-day moving average.”

The Nikkei 225, whose 200-day moving average is 10,305, jumped 1.6 percent to 10,041.80 as of 12:30 p.m. in Tokyo today.

The double-bottom form appeared between February and March. After the form was completed on March 8, the Nikkei 225 climbed 7.1 percent to this year’s high of 11,339.30 on April 5.

To contact the reporter for this story: Satoshi Kawano in Tokyo; Masaki Kondo in Tokyo at

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