Published 8th March 2019
The analysis in the short-term section below remains valid. The Nikkei 225 reversed to the downside and has to confirm or discard our forecast at this junction. The confirmation path is most likely and depicted in black. A motive wave has to form minute wave a(circle). It will most likely not unfold in a straight line. The important takeaway is that pullbacks are likely. Especially the second wave of minuette degree, which is denoted (ii), can get scary and retrace a lot of the downside progress within a short time span. However, we would not want to see minuette wave (ii) exceed 21,680 and the black dotted expansion resistance. Trading above these levels shifts odds to other scenarios.
All in all, the black path or something similar to that is most likely. We do not expect price action to trade above 21,680 in the next few weeks.
The analysis above is a historical abstract of our Nikkei 225 Premium Analysis. Subscribers can access multiple timeframes, which are not displayed on this page.