Nikkei 225: Flat (C) Wave 5 Decline Targeting 53,939

Mar 6

Nikkei225

I currently see the index in the 5-wave decline of the flat (C) wave, starting from today's 15:45 high at 55,759.

This flat (C) 5-wave can unfold as:
- A diagonal (more complex and grinding lower), or
- An impulse wave (sharp drop).

Either way, I expect it to definitely touch the March 6 low at 53,939.

Beyond that it's still unclear, but I think we may find initial support around the 53,600 zone. Even if it breaks into the 52,000 area, I believe strong bottoming action will emerge.

Therefore, once 53,939 is touched:
- Take profit on shorts and look for long entries, or
- If the decline accelerates, keep the short and add a long hedge (two-way position).

Immediate invalidation level: 55,759

Quick update.

#Nikkei225 #ElliottWave #TradingView

Mar 6

Note

Zooming out: From the February 26 high, this is an impulse decline. We are now in its 5th wave forming an Ending Diagonal (counted as wave 5, or possibly wave 3 — diagonals can only be confirmed after completion, so I’m keeping it flexible).