Nikkei 225 (N225) Elliott Wave Analysis Trading Lounge day chart.
Nikkei 225 (N225) Elliott Wave technical analysis
-
Function: Bullish Trend.
-
Mode: Impulsive.
-
Structure: Orange wave 3.
-
Position: Navy blue wave 3.
-
Direction next higher degrees: Orange wave 3 (started).
-
Details: Orange wave 2 appears completed; orange wave 3 is now in play.
-
Wave cancel invalidation Level: 35,109.
The NIKKEI 225 Elliott Wave analysis on the daily chart by Trading Lounge highlights a bullish trend in the Japanese stock index, driven by an impulsive wave pattern. The focus is on orange wave 3, which represents the main structure currently unfolding, signaling that the overall market sentiment remains positive.
-
Positioned within navy blue wave 3, this movement indicates a robust upward trajectory.
-
The completion of orange wave 2 confirms that orange wave 3 is now active. This stage is pivotal within the impulsive wave framework, as orange wave 3 typically aligns with strong price movements in the direction of the prevailing trend.
Key marker – Invalidation level
An invalidation level has been identified at 35,109. If the NIKKEI 225 index falls to or below this level, the ongoing progression of orange wave 3 would be considered invalid. This could suggest a potential shift in the trend or necessitate a re-evaluation of the wave structure.
Summary
The analysis maintains a bullish outlook for the NIKKEI 225, with orange wave 3 driving the current impulsive trend within navy blue wave 3. Traders should closely monitor price movements within this structure, especially around the 35,109 invalidation level. A breach of this threshold could indicate a reversal or a disruption in the current wave framework.
Nikkei 225 (N225) Elliott Wave Analysis Trading Lounge weekly chart.
Nikkei 225 (N225) Elliott Wave technical analysis
-
Function: Bullish Trend.
-
Mode: Impulsive.
-
Structure: Navy blue wave 3.
-
Position: Gray wave 3.
-
Direction next higher degrees: Navy blue wave 3 (continuing).
-
Details: Navy blue wave 2 appears completed; navy blue wave 3 is now in play.
-
Wave cancel invalidation level: 35,109.
The NIKKEI 225 Elliott Wave analysis on the weekly chart by Trading Lounge outlines a bullish trend in the index, driven by an impulsive wave pattern. The analysis highlights that navy blue wave 3 is the dominant structure currently unfolding, nested within gray wave 3, indicating strong upward momentum. This structure reflects the ongoing impulsive phase, signaling sustained bullish sentiment and the potential for price appreciation over the medium to long term.
-
The apparent completion of navy blue wave 2 has paved the way for the development of navy blue wave 3, a critical stage in the impulsive wave cycle.
-
Wave 3 typically represents the strongest and most extended movement within the wave structure, aligning with the overall upward trend in the NIKKEI 225.
Key marker – Invalidation level
An invalidation level has been set at 35,109. A decline to or below this level would disrupt the anticipated upward progression of navy blue wave 3, suggesting a potential shift in market sentiment or the onset of a corrective phase. Such a move would require a re-evaluation of the current wave structure.
Summary
The analysis maintains a bullish outlook for the NIKKEI 225, with navy blue wave 3 driving the impulsive trend within gray wave 3. Traders are advised to monitor price movements closely in relation to the invalidation level of 35,109. A breach of this level could indicate a disruption in the bullish structure, signaling a potential trend reversal or corrective phase.
Nikkei 225 Elliott Wave technical analysis [Video]
As with any investment opportunity there is a risk of making losses on investments that Trading Lounge expresses opinions on.
Historical results are no guarantee of future returns. Some investments are inherently riskier than others. At worst, you could lose your entire investment. TradingLounge™ uses a range of technical analysis tools, software and basic fundamental analysis as well as economic forecasts aimed at minimizing the potential for loss.
The advice we provide through our TradingLounge™ websites and our TradingLounge™ Membership has been prepared without considering your objectives, financial situation or needs. Reliance on such advice, information or data is at your own risk. The decision to trade and the method of trading is for you alone to decide. This information is of a general nature only, so you should, before acting upon any of the information or advice provided by us, consider the appropriateness of the advice considering your own objectives, financial situation or needs. Therefore, you should consult your financial advisor or accountant to determine whether trading in securities and derivatives products is appropriate for you considering your financial circumstances.
Recommended content
Editors’ Picks
EUR/USD treads water just above 1.0400 post-US data
Another sign of the good health of the US economy came in response to firm flash US Manufacturing and Services PMIs, which in turn reinforced further the already strong performance of the US Dollar, relegating EUR/USD to the 1.0400 neighbourhood on Friday.
GBP/USD remains depressed near 1.2520 on stronger Dollar
Poor results from the UK docket kept the British pound on the back foot on Thursday, hovering around the low-1.2500s in a context of generalized weakness in the risk-linked galaxy vs. another outstanding day in the Greenback.
Gold keeps the bid bias unchanged near $2,700
Persistent safe haven demand continues to prop up the march north in Gold prices so far on Friday, hitting new two-week tops past the key $2,700 mark per troy ounce despite extra strength in the Greenback and mixed US yields.
Geopolitics back on the radar
Rising tensions between Russia and Ukraine caused renewed unease in the markets this week. Putin signed an amendment to Russian nuclear doctrine, which allows Russia to use nuclear weapons for retaliating against strikes carried out with conventional weapons.
Eurozone PMI sounds the alarm about growth once more
The composite PMI dropped from 50 to 48.1, once more stressing growth concerns for the eurozone. Hard data has actually come in better than expected recently – so ahead of the December meeting, the ECB has to figure out whether this is the PMI crying wolf or whether it should take this signal seriously. We think it’s the latter.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.