TOKYO - The Nikkei Stock Average surged by more than 2,100 points at one stage in trading on May 21st, with the benchmark index continuing to trade above the 61,000 level in the Tokyo stock market.
One widely followed market analyst said previous support zones around 59,200 and 57,600 had proven to be "ideal buying opportunities," noting that the market rebounded sharply after falling more than 1,000 points before staging another rapid rally of over 1,000 points.
The analyst described the recent volatility as a successful "V-shaped recovery," telling viewers that traders who had followed earlier predictions were able to benefit from the rebound.
Despite the strong short-term rise, the analyst warned that the Nikkei may soon enter a temporary retest phase after the rapid advance. Attention is now focused on whether the index can break through a key resistance line near the previous selling zone.
According to the analysis, a decisive move above the resistance area could open the way for another rally toward the 63,600 to 64,000 range over the coming days or weeks. However, the market is also expected to face renewed selling pressure around the 62,200 to 62,500 level.
The strategist said the market remains in an upward channel for now and argued that the bullish outlook remains intact as long as the Nikkei stays above the 60,400 support level. A drop below 59,500, however, could trigger another sell-off toward 57,600.
The commentary also highlighted growing enthusiasm among short-term traders, particularly in technology-related shares following Nvidia’s record quarterly earnings, which helped fuel optimism across global equity markets.
