Nikkei 225 technical analysis: positive bias in place above 22,500
17:30, 22 July 2020

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The Nikkei 225 has been steadily rising over recent sessions, as global equity markets continue to enjoy strong dip-buying interest.
Nikkei 225 analysis shows that the index has a positive trading bias while the price trades above the 22,500 level.
Nikkei 225 medium-term price trend
The Nikkei 225 index is approaching the 23,000 level, as traders continue to buy any meaningful dips in the index.
Nikkei 225 technical analysis shows that a rising wedge pattern is forecasting that the index could trade towards a new all-time high.
The daily time frame shows that the rising wedge pattern is located between the 22,500 and 24,200 levels.
The projected target of the rising wedge is just above the index’s current all-time high, around the 24,100 level.
A large inverted head-and-shoulders pattern will form on the daily and weekly time frame if the price reaches 24,100.
Traders should be aware that the size of the bullish inverted head-and-shoulders pattern implies that the index could rally towards the 32,000 level over the long term.
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Nikkei 225 short-term price trend
Nikkei 225 technical analysis shows that the index has a strong bullish bias while the price trades above the 22,500 level.
The four-hour time frame shows that a bullish ascending triangle pattern will form if the price reaches the 23,200 resistance level.
According to the size of the ascending triangle pattern, the Nikkei 225 could rally towards the 23,700 level over the short term.
Any sustained moves below the 22,500 support level may trigger technical selling, with 22,200 and 21,800 the strongest levels of near-term support.
Nikkei 225 technical summary
Nikkei 225 analysis shows that short and medium-term bulls could be preparing to break the multimonth trading high, around the 23,200 resistance level.