Nikkei Technical Analysis: Nikkei Could See Fresh Highs
|The Japanese index Nikkei 225 illustrates a potential ascending channel. Price action could drive to the index to visit new highs. Read with us what to expect for the coming days on Nikkei.
1. The short-term structure shows a potential wave ((3)) labeled in black in progress.
2. In the long-term, the current Elliott wave sequence could be part of a wave V labeled in blue degree. This path could carry the Nikkei to see new higher highs.
3. The price could make a retracement to the area between 22,250 pts and 21,970 pts. Once tested in this area, Nikkei could continue the previous bullish sequence.
4. The potential bullish targets are at 23,040 pts, 23,450 pts, and 23,850 pts. The bullish scenario will be invalid if the price drops and closes below 21, 550 pts.
Trading Plan Summary
- Entry Level: 22,250 pts.
- Protective Stop: 21,550 pts.
- 1st Profit Target: 23,040 pts.
- 2nd Profit Target: 23,450 pts.
- 3rd Profit Target: 23,850 pts.
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