Hello fellow traders. In this technical blog we’re going to take a quick look at the Elliott Wave charts of NIKKEI published in members area of the Elliottwave-Forecast . As our members know, NIKKEI has recently gave us pull back against the 19841 low. Pull back made 3 waves , when the price reached Blue Box- Buyers zone. NIKKEI found buyers there as we expected. In further text we’re going to explain Elliott Wave Forecast and trading strategy
NIKKEI 4 Hour Elliott Wave Analysis 02.01.2020
Current view suggests NIKKEI is about to complete wave IV pull back. The price has already reached blue box area at 22947-22200 ( buying zone). However, we should be aware that there is no confirmation pull back is done. Until the price makes further separation higher another short term low cannot be ruled out. We expect to see further rally from the blue box ideally, or 3 waves bounce alternatively. As soon as the bounce reaches 50 fibs against the ((B)) black peak we should make Long positions risk free. Invalidation level for the long trades would be break below 1.618 Fib extension: 22200.
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.
NIKKEI 4 Hour Elliott Wave Analysis 02.04.2020
Eventually NIKKEI found buyers at the blue box area : 22947-22200 . The pull back completed at the 22624 low. We got nice reaction so far, when the price reached 50 fibs against the ((B)) peak. So whoever took long trades should be already risk free. Now we would like to see break above 12/16 peak to confirm next leg up is in progress. Alternatively if 22624 low gets broken in the mean time, NIKKEI would be showing 5 swings incomplete structure and would be doing deeper pull back.
Keep in mind market is dynamic and presented view could have changed in the mean time. You can check most recent charts in the membership area of the site. 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.
Elliott Wave Forecast