Nikkei 225 - Bullish Market With New Opportunities

The daily timeframe - the price broke a downtrend line and moved above SMA100. It confirms a trend reversal and new bullish market conditions.

The 4H chart gives a stable uptrend where the price reached a key zone where we can get possible trading opportunities. The resistance level at 21500 can be used with a breakout signal for buying. The entry level will be far from the better buying levels at the uptrend line. Probably it will be a good option to wait for a retracement to the uptrend line. Buy trades opened at the uptrend line will have less stop size and more space for upward movement. If you like a good risk-reward ratio, you should wait for reversals from the uptrend line and open buy trades based on them.

The breakout above 21500 resistance will be able to confirm the strength of bulls and further upward movement. The market will be able to reach the resistance zone between 21850 and 22000 levels. This zone should be used for fixing profit from buy trades.

Signals from indicators:
- MACD supports the further upward movement
- DMI is bullish, but ADX line falls below 20 signal level. It tells us about range market conditions. What does it mean?
Probably we will get a false breakout above 21500 resistance and the market will move sideways to the uptrend line. Buying from the uptrend line based on a reversal signal will be more logical in such market conditions. For confirmation of the breakout, it will be better to get the proof of bulls' strength from DMI indicator. For this, ADX line will have to start an upward movement, and for the perfect model, it should move above 20-25 levels.