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EuroMotif
Jan 4, 2019 3:08 AM

Nikkei to bottom at 18,500 ? JPN225 bottom in sight? 

Nikkei 225 index of Japanese listed sharesFXCM

Description

Crazy week for the Yen, but the Japanese stock index held within range.
Crurently looks like a wave (4) in progress, looking for wave (5) to start.
The 5 wave impulse would complete leg C of the correction.

If it falls through the 18,500 zone, then it could be quick trip to next zone below.
If it does fall through the first support, I will analyze that move and post a new Idea.

Background:
I trade mostly Forex and Crypto, but I watch the stock indices for risk sentiment.

I started following the Nikkei in Octo 2018


Then tracked a temporary botttom. My support zone was off by one increment, but the resistance zone proved valid


As the bounce progressed, I could see a 5 wave impulse starting and got that about right


Some of the best long trades came on this plan


So now I am trying to plot a possible bottom
Comments
kunsan
Nice analysis. Note that in this C wave, wave 2 was short and sharp, so the rule of alternation suggests that wave 4 should be long and flat. W4 might be trying to form a sideways triangle or a flat, in which case time will be needed for W4 to complete.
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