Below is a recap of our call and forecast for Nikkei 225 from our Chart of The Day post from 5/5/2015 – 5/22/2015. You can click the underlined link to view the original post on that date.
In our Chart of The Day at 5/5/2015, we said Wave (Y) low is now in progress and ideally expected to test 19043 – 19192 area to complete wave ((X)) pullback. In this area, we expect to see buyers in the Index and a 3 wave reaction higher at least as per Elliott Wave hedging idea.
In our Chart of The Day at 5/6/2015, we said Wave (Y) of ((X)) is still in progress and expected to end at 18805 – 19045 area. Although the Index has reached equal leg of (W) and (X) at 19194, further low towards 19045 (1.236 extension) to complete wave ((X)) can’t be ruled out. We expect to see buyers from 18805 – 19045 area for a 3 waves reaction higher at minimum as per Elliott Wave hedging idea.
In our Chart of The Day at 5/7/2015, we said wave (Y) of ((X)) has completed at 19055, and the Index has bounced as anticipated. Index is expected to bounce at least 3 waves higher with an ideal target of 19675 – 19821. Readers of our Chart of the Day who took a long position from 19043 – 19192 per our 5/5/2015 Chart of The Day should have a risk free trade already.
In our Chart of The Day at 5/20/2015, we said the decline to 19054 completed wave ((X)), and the Index has since resumed the rally in wave W in the form of a double correction ((w))-((x))-((y)). Wave ((y)) of W is in progress towards 20316 – 20509. Readers of our Chart of the Day who took a long position from 19043 – 19192 per our 5/5/2015 Chart of The Day should take profit at 20316 – 20509 area, and expect the Index to pullback 3 waves lower in wave X to correct the rally from 19054.
Since our last update, current preferred Elliottwave view suggests wave ((y)) of W has ended at 20350, and wave X pullback is in progress towards the ideal target of 19561 – 19714 (50 – 61.8 back). Wave X pullback is unfolding in the form of a double correction ((w))-((x))-((y)) where wave ((w)) is expected to complete at 19996 – 20107, then it should bounce in wave ((x)) before turning lower to resume wave X pullback towards 19561 – 19714. We do not like selling the proposed wave X pullback. As far as 19054 pivot holds in wave X pullback, expect buyers to come for 3 waves higher at minimum to correct the decline from 20350 per Elliott Wave hedging technique.
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