The Nikkei 225 is currently the weakest of the major stock indexes and could fall toward its March lows of around 7,000 points next month, Roelof van den Akker, chartist at ING Wholesale Banking, told CNBC.
“We could see a decline into the next month towards the March lows around 7,000, so that’s a serious decline,” Akker said.
If the Nikkei stays above the 200-day exponential moving average, investors should expect a decline toward the support level of around 9,000 points, according to Akker.
From there, the Japanese index could bounce back slighting, but investors should sell each rally, he said.
There is a “bearish outlook for equities, particularly within the Nikkei, which is one of the weakest stock markets at the moment,” Akker said.
- Watch the video above to see Roelof van den Akker’s view on German bunds.
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