Nikkei Forecast for 3rd June 2013

Nikkei failure to beat tricky resistance at 14100/120 saw us then break 13540/530. The weekly close below the 6 month trend line starts this week on a negative. Failure to beat 13680/720 keeps the market under pressure to retest last week’s low of 13420. A break lower this week could target the next support at 13180. Exit shorts & try longs here as we should start to look oversold at this stage but, with stops below 13000.

Above 13720 could allow a move up towards 13893, possibly 14000/050. May be wise to exit longs here & try shorts up to 14186 with stops above 14300.