Bullish signs line up for the NikkeiJapan 225 CFDFOREXCOM:JP225FOREXcomThe repeated defence of 68,782, the early June swing high, is the standout feature on the H4 chart. There have been around 10 separate probes at or beneath the level, with buyers repeatedly stepping in to defend it. That's a strong signal of demand and helps explain the push higher over recent sessions. Yesterday's break above 70,683, a level that had acted as both support and resistance, adds to the constructive picture. The index is now trading through the downtrend that's been in place since the June 22 peak, leaving the technical setup looking increasingly bullish. The key question now is whether it can stick above the trendline. A sustained break above trendline resistance, ideally followed by a successful retest, would strengthen the bullish case, allowing longs to be established above with a tight stop beneath the trendline. An initial target would be the June 25 swing high at 72,600, followed by the record high at 73,520. If the index starts to stall or reverse near 72,600, it may be be prudent to reduce exposure or square the trade rather than waiting for the ultimate target. The message from the oscillators is becoming increasingly instructive for the bulls. RSI (14) continues to trend higher and is now pushing back towards 60. MACD has crossed above its signal line, flipped back into positive territory and continues to trend higher. Together, they complement the price action, suggesting upside momentum is continuing to build and favouring longs while the index remains above trendline resistance. Good luck! DS