JPN225 (Nikkei) – Selling into rallies

Ian Coleman FXStreet

Technical

Monthly. Could be seen as a completed bullish Elliott Wave count (5-waves). A bearish Outside Bar was posted in October 2018, often an indication that a top is in place. The Marabuzo (mid-point from open and close) from October is located at 22963

Weekly: Possibly forming a bearish Head and Shoulders pattern. Trend line resistance is located at 22240

Daily: Although we have seen a reaction lower from the 50% pullback level of 21760 (from 24475-19045) buyers returned close to the Ichimoku Cloud support. A full AB=CD corrective formation takes the index to 22100, close to the possible right shoulder. We look to sell into rallies

Action:

We look to Sell at 22100

Stop: 22600

Targets: 19000 and 18650

Author

Ian Coleman

FXStreet

Ian started his financial career at the age of 18 working as a Junior Swiss Broker at Godsell Astley and Pearce (London). He quickly moved through the ranks and was Desk Manager at RP Martins at the age of 29.

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