Nikkei Prepares to Find Fresh Buyers
|The Japanese index Nikkei 225, in its 2-hour chart, shows a consolidation formation from the latest rally started on January 08th, 2020, at 22,936.8 pts.
The price action suggests that the Japanese index could be developing a flag formation, which represents a continuation pattern.
A long position could activate if the price retraces to the lower line of the potential flag pattern and closes above 23,727.3 points. The bounce could drive to Nikkei in the first stage to 23,929.4 points.
The up-up-up sentiment in the stock markets could drive Nikkei to soars to the area of 24,021.7 points, even could re-test the December 16th high at 24,127.1 points.
The invalidation level of the bullish scenario is located at 23,516.5 points. Finally, the potential risk/reward ratio is 1.92.
Trading Plan Summary
Entry Level: 23,727.3 pts.
Protective Stop: 23,516.5 pts.
1st Profit Target: 23,929.4 pts.
2nd Profit Target: 24,021.7 pts.
3rd Profit Target: 24,127.1 pts.
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