Nikkei 225 Formed V-Shaped Bottom, Target at 31,000
Trend Analysis
The main view of this trade idea is on the Daily Chart.
The Nikkei 225 Index appears to be breaking out of its downward trend channel that formed in September 2021. The breakout appears to be from the V-shaped bottom in the Index over the last month and a half. Expectations are for a continued rally towards all-time highs, around the 31,000 price level. This view will be negated if JP225 were to decline back below 27,000.
Technical Indicators
The technical indicators corroborates this view. The JP225’s Supertrend is back in buy-mode after the Index crossed above 26,000. Also, JP225 is back above the Daily MA, the 1st time since early January 2022. The Awesome Oscillator is above 0 and green while the RSI is above 50.
The intra-day trend following indicators of the Nikkei 225 Index also display uptrends in the 15-Min, 2-Hour and 4-Hour Time frames. Short to medium term support is seen around the 27,300-27,500 price range.
Recommendation
The recommendation will be to go long at market, with a stop loss at 27,000 and a target of 31,000. This produces a risk/reward ratio of 1.94.
Disclaimer
The views expressed are mine and do not represent the views of my employers and business partners. Persons acting on these recommendations are doing so at their own risk. These recommendations are not a solicitation to buy or to sell but are for purely discussion purposes.
The main view of this trade idea is on the Daily Chart.
The Nikkei 225 Index appears to be breaking out of its downward trend channel that formed in September 2021. The breakout appears to be from the V-shaped bottom in the Index over the last month and a half. Expectations are for a continued rally towards all-time highs, around the 31,000 price level. This view will be negated if JP225 were to decline back below 27,000.
Technical Indicators
The technical indicators corroborates this view. The JP225’s Supertrend is back in buy-mode after the Index crossed above 26,000. Also, JP225 is back above the Daily MA, the 1st time since early January 2022. The Awesome Oscillator is above 0 and green while the RSI is above 50.
Recommendation
The recommendation will be to go long at market, with a stop loss at 27,000 and a target of 31,000. This produces a risk/reward ratio of 1.94.
Disclaimer
The views expressed are mine and do not represent the views of my employers and business partners. Persons acting on these recommendations are doing so at their own risk. These recommendations are not a solicitation to buy or to sell but are for purely discussion purposes.
Trade closed: stop reached