[AI Analysis] Human Made recovers the 25-day moving average with a bullish engulfing pattern! 5 carefully selected swing trade stocks (October 22, 2026)

Introduction

Hello! Today, I am bringing you some featured stocks for Japanese stock swing trading.

In this article, AI discusses stocks from five perspectives (N1–N5) and narrows down the selection to five Japanese stocks suitable for swing trading over a period of several days to several weeks. The data is based on the closing prices of the most recent trading day, Wednesday, October 21, 2026.

The Nikkei 225 closed at 64,621 yen on Wednesday, October 21, up 546 yen (+0.85%) from the previous day. It rebounded from the -1.30% drop the day before, and the TOPIX also rose by +0.86%. However, looking at the last 10 trading days, the Nikkei 225 has fallen approximately -8.6% from its high of 70,798 yen and is still in a correction phase. With earnings season approaching, I have narrowed the selection to stocks with January, April, and July fiscal year-ends, which are expected to announce their next results in December.

Today’s featured stock is Human Made. After rising from a September low of 1,366 yen to 2,226 yen on Monday, October 5, it underwent a correction. However, on Wednesday, October 21, it formed a bullish engulfing candle with a +7.44% gain on volume of 1.16 million shares, returning above the 25-day moving average (1,849 yen). The full-year operating profit forecast has already been raised to 5.3 billion yen, providing fundamental support. With a daily volume of around 1 million shares, it is the most liquid of the five stocks, and its ease of trading made it the top recommendation in our internal brainstorming session.

On the limitations of AI analysis

The analysis in this article is based on data as of the closing price of the previous trading day. For stocks with fast price movements, there may be a discrepancy between the stock price at the time of analysis and the time you read this article. For all five stocks, the current price is within the target buying range. However, although there was a rebound on Wednesday, October 21, the Nikkei 225 is still in a correction phase, down about -8.6% over the last 10 trading days. The judgment will change depending on whether the rebound continues or if it seeks lower levels. Also, since some stocks with low liquidity are included, you may not be able to execute trades at your desired price depending on the order book situation. Please use the buying and stop-loss targets as one of the factors for your decision, and be sure to check the latest stock price and order book status before entering a trade.

🎯 N1–N5, Brainstorming session start!

N1 (Chart Analysis): What catches the eye on the chart is Balnibarbi. It has broken above a narrow box that lasted for a month with two consecutive days of +3σ moves. Human Made has also formed an engulfing pattern above the 25-day moving average, and the shape looks good.

N5 (Momentum): If we are talking about momentum, it is Coly. It closed at its high and broke out of its consolidation, and after the close, there was a tailwind with 700,000 pre-registrations for a new Disney game. Human Made has finished its correction from 2,226 yen and is turning back up with volume.

N2 (Fundamentals): Looking at earnings support, Mirial has a projected full-year operating profit increase of +151%, showing clear growth in its core business. Human Made has already raised its full-year forecast. Coly is in the red, so it should be treated as a pure play on news/materials.

N3 (Themes/Market Conditions): Since we are right before earnings season, I narrowed it down to stocks with January, April, and July fiscal year-ends that will announce next in December. The themes are well-diversified across the five: semiconductors for Mirial, brand apparel for Human Made, IP games for Coly, dining for Balnibarbi, and human resources for Howtelevision.

N4 (Supply-Demand/Risk Management): In terms of supply and demand, the depth of volume is important. Coly and Howtelevision have thin order books, so the condition is to reduce lot sizes and enter with limit orders. Human Made is the most reliable to trade with a volume scale of 1 million shares. Let’s go with ‘Human Made’ as the top recommendation.

With that said, let’s take a look at the 5 stocks together.

1. Human Made (456A) Top recommendation – Today’s featured stock

Stock Data

• Stock Code: 456A

• Current Price: 1,891 yen (Oct 21 close)

• Buying Target: 1,840 yen – 1,900 yen

• Profit-taking Target: 2,040 yen – 2,120 yen

• Stop-loss target: 1,730 yen

• Range position: Within the target buying range

• Follow-up entry target: Buy at the opening if the opening price is 1,920 yen or below; skip if it exceeds this / Stop-loss at 1,730 yen

Selection Rationale and Commentary

The stock price had been adjusting after rising from the September low of 1,366 yen to 2,226 yen on Monday, October 5. On Wednesday, October 21, it formed a bullish engulfing line with a +7.44% gain on 1.16 million shares of volume, recovering above the 25-day moving average (1,849 yen). The adjustment phase has passed, and the stock has rebounded with significant volume.

In terms of performance, operating profit for the first half was 2.46 billion yen. The full-year operating profit forecast has already been revised upward from the 4.8 billion yen projected at the end of the first quarter to 5.3 billion yen. With an equity ratio of 80%, the company also has a solid financial foundation.

Regarding supply and demand, the trading volume is around 1 million shares per day, making it the most liquid among the 5 selected stocks.

This is the second time Human Made has appeared, following our article on Tuesday, October 13. The targets at that time were: buying at 1,920–1,990 yen, profit-taking at 2,220–2,300 yen, and stop-loss at 1,840 yen.

Regarding earnings, the previous second-quarter financial results were announced on Friday, September 11. The next announcement is expected around mid-December (estimated). There is no dividend. Since the next earnings date is an estimate, please verify the scheduled date before purchasing.

The reason for selecting it as today’s featured stock is that it shows a clear recovery above the 25-day moving average with a volume-backed engulfing pattern, is supported by the upward revision of full-year earnings forecasts, and is the most liquid and easiest to trade among the 5 stocks. It is a stock worth following to see if it can maintain the 25-day moving average from tomorrow onwards and if it can return toward the high of 2,226 yen.

The current price of 1,891 yen is within the target buying range. The risk to the 1,730 yen stop-loss is approximately 8.5%, and the return to the 2,040 yen profit-taking target is approximately 7.9%, resulting in a risk-reward ratio of 1:0.9.

If following the breakout, buy if the opening price is 1,920 yen or below; skip if it exceeds this. The risk to the 1,730 yen stop-loss is approximately 9.9%, and the return to the 2,040 yen profit-taking target is approximately 6.3% (both based on the opening price upper limit of 1,920 yen).

If buying at the 1,900 yen purchase limit, the stop-loss width is relatively wide at approximately 8.9% (approximately 9.9% from the follow-up opening price limit of 1,920 yen), so it is recommended to limit the number of shares to keep the loss amount per trade consistent.

2. Mirial (4238)

Stock Data

• Stock Code: 4238

• Current Price: 1,924 yen (October 21 closing price)

• Buying Target: 1,870 yen – 1,930 yen

• Profit-taking Target: 2,050 yen – 2,150 yen

• Stop-loss Target: 1,780 yen

• Range position: Within the target buying range

Selection rationale and commentary

The stock price dropped sharply by -11% on Thursday, October 15, from the high of 2,259 yen on Wednesday, October 14. Since then, it has been consolidating between 1,786 and 1,991 yen, and rebounded by +4.17% on Wednesday, October 21. It is currently in a position to attempt a recovery of the 25-day moving average (1,961 yen).

In terms of performance, the first half saw a +25.9% increase in sales and a +67.3% increase in operating profit. The full-year operating profit forecast is +151%. The growth is clear, driven by increased demand for its core business of semiconductor wafer transport containers.

In terms of supply and demand, the average trading volume is approximately 96,000 shares.

Mirial appears for the second time, following the article on Wednesday, October 14 (introduced as a stock to watch). The targets at that time were: buy at 2,080–2,130 yen, take profit at 2,330–2,400 yen, and stop loss at 1,990 yen. Subsequently, it dropped sharply by -11% on Thursday, October 15.

Regarding financial results, the previous second-quarter results were announced on Tuesday, September 8. The next announcement is expected in early December (estimated). The ex-dividend date for the year-end dividend is the end of January. Since the next earnings announcement date is an estimate, please check the scheduled date before buying.

The current price of 1,924 yen is within the target buying range. The risk to the stop loss at 1,780 yen is approximately 7.5%, and the return to the take profit at 2,050 yen is approximately 6.5%, resulting in a risk-reward ratio of 1:0.9.

If you buy at the upper limit of 1,930 yen, the stop-loss range is relatively wide at about 7.8%, so it is recommended to limit the number of shares to keep the loss amount per trade consistent.

3. Coly (4175)

Stock data

• Stock code: 4175

• Current price: 2,975 yen (October 21 closing price)

• Buying target: 2,880 yen – 2,980 yen

• Take profit target: 3,100 yen – 3,200 yen

• Stop loss target: 2,800 yen

• Range position: Within the target buying range (near the upper limit)

• Follow-up entry target: If the opening price is 2,990 yen or less, buy at the open; if it exceeds this, pass / Stop loss at 2,800 yen

Selection rationale and commentary

On Wednesday, October 21, it closed at the high (+5.42%) and broke above the upper limit of the consolidation that had lasted for 5 weeks (approximately 2,940 yen). It is now eyeing the high of 3,095 yen from Thursday, September 24.

Regarding fundamentals, it was disclosed after the market close on Wednesday, 10/21, that the number of pre-registrations for “Disney Sparkling Stars” has reached 700,000.

On the other hand, the company posted an operating loss of 850 million yen in the first half, making it a stock with weak earnings backing. This time, I have selected it with the understanding of the operating loss, treating it as a “pure material play” that rides the momentum of the news and the chart.

Regarding supply and demand, since the trading volume is thin at around 10,000 shares per day, trading with limit orders and small lots is a prerequisite.

Regarding earnings, the previous second-quarter results were announced on Friday, 9/11. The next announcement is expected around mid-December (estimated). There is no dividend. Since the next earnings date is an estimate, please check the scheduled date before purchasing.

Since the stock price is near 3,000 yen, the required capital for a 100-share unit is relatively large at approximately 300,000 yen.

The current price of 2,975 yen is within the target buying range. The risk to the stop-loss at 2,800 yen is approximately 5.9%, and the return to the profit-taking target at 3,100 yen is approximately 4.2%, resulting in a risk-reward ratio of 1:0.7.

If following a breakout, buy at the opening price if it is 2,990 yen or lower; if it exceeds this, pass. The risk to the stop-loss at 2,800 yen is approximately 6.4%, and the return to the profit-taking target at 3,100 yen is approximately 3.7% (both based on the opening price cap of 2,990 yen).

4. Balnibarbi (3418)

Stock Data

• Stock Code: 3418

• Current Price: 1,072 yen (10/21 closing price)

• Buying Target: 1,060 yen – 1,075 yen

• Profit-taking Target: 1,100 yen – 1,130 yen

• Stop-loss Target: 1,044 yen

• Range Position: Within buying target range

• Follow-up Entry Target: Buy at the opening if the opening price is 1,080 yen or lower; if it exceeds this, pass / Stop-loss at 1,044 yen

Selection Rationale and Commentary

Since September, the stock price had been moving within an extremely narrow box of 1,045 to 1,058 yen. It has now broken above the +3σ of the Bollinger Bands for two consecutive days on Tuesday, 10/20, and Wednesday, 10/21. This is a breakout from a long-lasting consolidation.

Regarding earnings, the operating profit for the previous fiscal year (ending in July) was 390 million yen (-39%), but the forecast for the current fiscal year is 650 million yen (+67.5%), indicating a recovery.

Since this is a stock with a small price range, the profit-taking target is for short-term turnover of +3-5%. As the normal trading volume is thin at less than 10,000 to 20,000 shares, trading with limit orders and small lots is a prerequisite.

Regarding earnings, the full-year results for the fiscal year ending in July were already announced on Monday, September 14. The next announcement is expected around mid-December (estimated). The record date for the interim dividend and shareholder benefits is the end of January. Since the next earnings date is an estimate, please confirm the scheduled date before purchasing.

The current price of 1,072 yen is within the target buying range. The risk to the stop-loss at 1,044 yen is approximately 2.6%, and the return to the profit-taking target of 1,100 yen is approximately 2.6%, resulting in a risk-reward ratio of 1:1.0.

If following a breakout, buy at the opening price if it is 1,080 yen or lower; if it exceeds this, pass. The risk to the stop-loss at 1,044 yen is approximately 3.3%, and the return to the profit-taking target of 1,100 yen is approximately 1.9% (both based on the opening price cap of 1,080 yen).

5. Howtelevision (7064)

Stock Data

• Stock Code: 7064

• Current Price: 1,041 yen (October 21 closing price)

• Buying Target: 1,010 yen – 1,045 yen

• Profit-taking Target: 1,090 yen – 1,130 yen

• Stop-loss Target: 990 yen

• Range Position: Within the buying target range

• Follow-up Entry Target: Buy at the opening if it is 1,055 yen or lower; if it exceeds this, pass / Stop-loss at 990 yen

Selection Rationale and Commentary

After the market closed on Tuesday, October 20, the company upwardly revised its profit forecast for the fiscal year ending January 2027 (revising ordinary profit to 85 million – 185 million yen). Following this, on Wednesday, October 21, the stock rose 3.58% on volume over ten times the usual level, approaching the 30-day high range (1,048 yen).

In terms of performance, the first half saw an increase in both sales (+17.5%) and operating profit (+15.9%).

Regarding supply and demand, this is a stock with extremely thin liquidity, with normal daily volume in the thousands of shares. Trading with limit orders and small lots is a prerequisite, and market orders should be avoided.

Regarding earnings, the previous second-quarter results were announced on Wednesday, September 9. The announcement on Tuesday, October 20, was an upward revision of the earnings forecast, not an earnings announcement. The next earnings announcement is expected around mid-December (estimated). There is no dividend. Since the next earnings date is an estimate, please confirm the scheduled date before purchasing.

The current price of 1,041 yen is within the target buying range. The risk to the stop-loss at 990 yen is approximately 4.9%, and the return to the profit-taking target of 1,090 yen is approximately 4.7%, resulting in a risk-reward ratio of 1:1.0.

If following a breakout, buy at the opening price if it is 1,055 yen or lower; if it exceeds this, pass. The risk to the stop-loss at 990 yen is approximately 6.2%, and the return to the profit-taking target of 1,090 yen is approximately 3.3% (both based on the opening price cap of 1,055 yen).

📝 Today’s Summary

The 5 stocks for today, ranked by risk-reward ratio (calculated based on the current price and the lower limit of the profit-taking target), are as follows.

• [3418] Balnibarbi: 1:1.0. Broke out of a narrow box with two consecutive days of +3σ. The price range is small, suitable for short-term rotations of +3-5%. Since volume is thin, use limit orders and small lots.

• [7064] How Television: 1:1.0. Volume surged following the upward revision on 10/20. Volume is extremely thin, so limit orders and small lots are a prerequisite.

• [456A] Human Made: 1:0.9. Top pick and today’s featured stock. Recovered the 25-day moving average with a bullish engulfing pattern, and the full-year forecast has already been raised. Since the stop-loss range is wide, keep the number of shares low.

• [4238] Mirial: 1:0.9. Rebounded after price consolidation following a sharp drop, and is now testing the recovery of the 25-day moving average. Full-year operating profit forecast is +151%. Since the stop-loss range is wide, keep the number of shares low.

• [4175] Coly: 1:0.7. Broke out of a consolidation pattern by closing at the high. As it is operating at a loss, it is a play based solely on news/materials. Since volume is thin, use limit orders and small lots.

The Nikkei 225 rebounded on Wednesday, 10/21, but it is still in a correction phase, down approximately -8.6% over the last 10 trading days. As we are just before the earnings season, I have narrowed the selection to stocks whose next earnings are expected in December and have diversified the themes into 5 categories. For Human Made and Mirial, keep the number of shares low due to the wider stop-loss range, and for Coly, Balnibarbi, and How Television, it is a prerequisite to enter with limit orders and small lots because the volume is thin. Since the earnings dates are all estimates, please check that they do not overlap with your holding period, and be sure to place a stop-loss order at the same time as your purchase.

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Disclaimer

This article is for informational purposes only and does not recommend the buying or selling of any specific stock. The stock price and financial data listed are as of the closing price on Wednesday, October 21, 2026, and their accuracy and completeness cannot be guaranteed. Please make investment decisions at your own risk. The author assumes no responsibility for any losses incurred based on the information in this article.

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