I just love trading the Nikkei! Its been good to me in my very short career as a trader. I present to you the Cup & Handle pattern formation. A lot of traders do not believe this is an actual thing but it does exist and it does happen albeit not as often other patterns. The first idea I ever shared about a month ago was based on the C&H pattern formation. I didn't actually trade it, my analysis was after the fact loool! I was having a "Vision is 2020 in retrospect" moment and decided to share my findings. So generally I would put my money on a C&H setup.
So what am I saying here? Long term the Nikkei is still very much Bullish. The C&H pattern has formed and completed. We are now in the retest phase of the pattern. We have seen price break out in October and November and now December has started bearish. I believe this month is the beginning of the retest of the break out level, so for the next month or two the Nikkei will be bearish. Actually my colleague managed to cash in on the first day of bearishness on Friday and is looking to ride it further down to around 21200 then start looking for the LONG trade all the way up to around 30933. After the retest we will most likely see a very fast upward move. The minimum price objective for the C&H pattern is all the way up at 30933. Thats a lot of pips!
Seeing as though I believe that 30933 is possible, I went ahead and added an even longer term target which even I feel is a stretch but even stretches are possible okay... shoot me.. the market does what it wants and it may just want what I want looool! i mean we do have a clear uptrend in play and the way the fundamentals and sentiment are setup, the Nikkei may be just be unstoppable for the next few years.
critic, refute, agree
Mentors not Trolls!
So what am I saying here? Long term the Nikkei is still very much Bullish. The C&H pattern has formed and completed. We are now in the retest phase of the pattern. We have seen price break out in October and November and now December has started bearish. I believe this month is the beginning of the retest of the break out level, so for the next month or two the Nikkei will be bearish. Actually my colleague managed to cash in on the first day of bearishness on Friday and is looking to ride it further down to around 21200 then start looking for the LONG trade all the way up to around 30933. After the retest we will most likely see a very fast upward move. The minimum price objective for the C&H pattern is all the way up at 30933. Thats a lot of pips!
Seeing as though I believe that 30933 is possible, I went ahead and added an even longer term target which even I feel is a stretch but even stretches are possible okay... shoot me.. the market does what it wants and it may just want what I want looool! i mean we do have a clear uptrend in play and the way the fundamentals and sentiment are setup, the Nikkei may be just be unstoppable for the next few years.
critic, refute, agree
Mentors not Trolls!