The Nikkei surged higher on Thursday, ending the session up 1.78% and above the 23185 range high. This completes the bull ‘triangle’ continuation pattern, which signals a move to 24090/115 initially, economists at Credit Suisse inform.

Key quotes

“We now look for a move towards medium-term resistance, seen starting at 23970/24000, the potential downtrend from the 2018 high and stretching up to 24090/115, which is the 2019/20 highs. It’s worth highlighting though that the ‘measured triangle objective’ points even to an eventual breakout above here to test the 2018 high at 24450.”

“Reinforcing the breakout is the fact that daily MACD has now crossed higher for first time since June.”

“We now ideally look for the market to hold above 23185/10 to keep the risks directly higher, however only a move below 22670 would negate the ‘triangle’ to leave the market trapped within its range again, which is not our base case.”