(XNKY) Xtrackers Nikkei 225 1C - Ratings and Ratios

The Xtrackers Nikkei225 UCITS ETF1C EUR is a German-based ETF that tracks the Morningstar Japan TME NR JPY index, providing investors with exposure to Japans large-cap equity market. As a Japan Large-Cap Blend Equity ETF, it is designed to capture the performance of the Nikkei 225 index, a widely recognized benchmark for the Japanese stock market.

With a substantial Assets Under Management (AUM) of €12.1 billion, this ETF is one of the largest and most liquid in its category, offering investors a reliable means of accessing the Japanese equity market. The ETFs size and liquidity are attractive features for investors seeking to gain exposure to Japans economy.

Analyzing the ETFs recent price action, we observe that the current price of €74.59 is below its 20-day Simple Moving Average (SMA) of €75.26, indicating a potential short-term bearish trend. However, the 50-day SMA of €72.66 is below the current price, suggesting a longer-term bullish trend. The 200-day SMA of €76.13 is above the current price, indicating a potential resistance level. The Average True Range (ATR) of 0.89 (€1.19% of the current price) suggests moderate volatility.

Using a combination of technical and fundamental analysis, we can forecast the ETFs potential future performance. Given the current price is near the lower end of its 52-week range (€64.54 - €80.84), and considering the Nikkei 225 indexs historical tendency to mean-revert, we can expect the ETF to potentially move towards its 20-day SMA in the short term. However, the overall trend and the ETFs fundamental characteristics, such as its large AUM and diversified holdings, may drive the price towards the 200-day SMA in the longer term. A potential price target could be around €78-€80, assuming a continuation of the longer-term bullish trend and a reversion to the mean.

It is essential to monitor the ETFs price action and adjust the forecast accordingly. Investors should also consider their individual risk tolerance, investment goals, and overall market conditions before making any investment decisions.