By Chris Becker
Looking at Chinese stocks first, where last week saw the Shanghai Composite returned after being close for most of the previous week due to Chinese New Year holiday. The result was a solid breakout above the high moving average and key resistance on the weekly chart at the 2600 point level, closing just shy of 2700 points. This was mainly due to more optimism over the US/China trade talks plus the possibility of more internal stimulus, as confidence continues to build the upside target is at least 3000 points if this breakout sticks:
Japanese stocks have been buoyed by a weaker Yen all week, but really its about other risk market correlations with the daily chart of the Nikkei 225 showing price tentatively breaking out above former support, but firm resistance at the 21000 point level. Momentum is now really behind the market, but the inversion of the USDJPY pair on Friday night may push stocks lower on the open here this week for another sliding sideways action:
