Nikkei 225 Faces ‘Inevitable’ Drop to 9,000: Technical Analysis

(Bloomberg) -- Japan’s Nikkei 225 Stock Average, poised to fall below its 200-day moving average for the first time in two years, may extend its two-month slump through to the 9,000 level, according to Fortis Private Bank. The gauge dropped 1 percent to 9,401.58 yesterday, just above the 200-day simple moving average of 9,350. The last time it broke below that average following a sustained decline was in July 2007, which preceded a tumble of almost 60 percent through to a 26-year low of 7,162.90 on Oct. 27, 2008. The gauge failed twice to break above the 200-day average during that slump.

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