After a prolonged downswing, Asian-Pacific stock indices are finally trading in the red zone. Investors anticipate further economic stimulation in China as Chinese industrial companies are seeing a in income decline. However, the Japanese stock market is mainly bearish today as the Japanese Yen is getting stronger, thereby affecting the country’s export.
The current state of affairs looks as follows:
· MSCI Asia Pacific: + 0,4%.
· Nikkei 225: - 0,1%.
· Shanghai Composite: +1,3%.
· Hang Seng: +0,9%.
The chart below, courtesy of , reflects the current state of affairs in the market of Nikkei 225:
The index has probably finished wave 3 of [c] and is forming wave 4. The critical level of resistance for this scenario is 9111. On breaking above the level, the price will show us that the pattern has taken the form of a double 3-wave pattern “wxy” instead of a simple zigzag.
