This NIKKEI 225   covers the question top of mind of many investors today: will Tokyo’s NIKKEI 225 continue on its impressive upwards run which accelerated early 2017? Will the Reviving Stimulus program or what the world is commonly referring to as Abenomics be enough to keep the Nikkei 225 rally going?

Eleven months ago, at  , we said that The Nikkei 225 chart looks Bullish, Right after the announcement of Abe’s win, we reiterated that the Nikkei 225 chart still looks constructive. For 2018, we think the Bull market will continue for Nikkei 2018.

As usual, we will look at the charts to find indications of the next moves. Our goal is to provide our readers with our Nikkei 225 forecast for 2018, price levels to watch for and threats that could invalidate our outlook so they can react to changes quick enough. As usual due diligence and managing risk is of the utmost importance to preserve capital.

A NIKKEI 225 Forecast for 2018: The Chart Setup

The chart set up signals the start of a new bull market for Japanese equities provided the 21,000 level holds. In terms of price targets the 25,000 level is definitely on deck. The 30,000 level could get reached as well though it will depend on multiple factors.

As shown by the chart below, the Nikkei got a boost first from the prospect of Abenomics and later on from the economical stimulus that was crafted by the prime minister and supported by Haruhiko Kuroda, Bank of Japan’s governor.

We see below how right after Abe’s first election in September 2012, the market rallied. Nikkei 225 consolidated gains and broke the important 21000 level after Abe’s recent election win. The 21000 level was a top in 2000 and 2015.

Given the importance of the resistance that was just broken we think the upcoming move will be important, and a run upwards might be in store provided the 21,000 holds as a support now.