Hello fellow traders. In this technical blog we’re going to take a quick look at the Elliott Wave charts of NIKKEI . As our members know, NIKKEI has had incomplete bullish sequences in the cycle from the December 26th 2018 low. The Elliott wave structure had been calling for further strength targeting 22213 + area. Consequently, we advise members to avoid selling NIKKEI , favoring the long side in short term. In further text we’re going to explain the Elliott wave structure and the forecast.
NIKKEI 4 Hour Elliott Wave Analysis 4.10.2019
As we can see on the chart below , NIKKEI is showing incomplete sequences in the cycle from the December’s low. Current structure is suggesting we’re doing 7th swing from the 12.26. low. At the moment, futures is still missing the equal legs area, marked as a blue box ( 22213 -23475). Proposed December’s cycle is unfolding as Elliott Wave Double Three Pattern , labeled as WXY red. We are currently doing ((C)) black of Y red which is 7th swing. We don’t recommend selling the index at this stage and favor the long side against the 20656 low.
Now, let’s look at the short term price structure.
NIKKEI 1 Hour Elliott Wave Analysis 4.10.2019
NIKKEI has given us wave (4) Blue pull back, that has unfolded as ABC red Elliott Wave ZIG ZAG Pattern. The Index is bullish against the 20704 low and we favor the long side. Short term pull back has reached blue box area at : 21583-21427 ( buyers zone). As the pull back is showing enough number of swings from the peak, we are calling it completed at 21567 low. We are already getting reaction from there, however need to see further separation from the current low. As our members know, Blue Boxes are no enemy areas , giving us 85% chance to get a bounce. The main trend is bullish and we expect to see reaction in 3 waves up from the blue box at least. As soon as the bounce reaches 50 fibs against the B red high, buyers should make long positions risk free and let the profit run.
NIKKEI 1 Hour Elliott Wave Analysis 4.16.2019
Buyers appeared right at the blue box when Elliott Wave ZIG ZAG completed at 21567 low. We got expected rally and break of 04/08 peak. As a result members who took long trades are now enjoying profits in risk free positions. The price is now ending short term cycle from the 21567 low as 5 waves structure and we could see 3 waves pull back soon. We should keep in mind that minimum target is already reached at 22213 . However proposed extension higher in NIKKEI is possible due to correlation with some European Indexes , like FTSE and IBEX that are still showing incomplete sequences in Equivalent cycles
Keep in mind that market is dynamic and presented view could have changed in the mean time. Best instruments to trade are those having incomplete bullish or bearish swings sequences. We put them in Sequence Report and best among them are shown in the Live Trading Room. You can check most recent charts in the membership area of the site.
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