The index eased in early Monday trading and stays below Friday’s fresh multi-year high at 5443 (session high in Asia was 5442). The move could be seen as correction ahead of fresh upside as the price rallied strongly last week, gaining 4.3% for the week. Strong bullish signal was generated on last week’s break above former peak at 5284 (26 Apr 2015 high/Fibo 76.4% of 6168/2396, May 2007/Feb 2009 fall) that would extend bull-leg from 3922 (June 2016 trough) towards next targets at 5660 zone. Meantime, the price is expected to correct recent strong gains, as daily studies are overbought. Rising daily Tenkan-sen offers good support at 5323, ahead of broken former peak at 5284 (also rising 10SMA) and last week’s low at 5213 (reinforced by weekly Tenkan-sen and near daily higher base at 5205). Only break here would weaken the structure and signal deeper correction towards 5119 (24 Apr post first election round gap-higher low).
Res: 5443, 5500, 5550, 5660
Sup: 5367, 5323, 5284, 5205
