The Nikkei is likely to followthrough to the upside. Our two main reasons for this call are:
1. There is no clean wave structure that can fit the current pattern into a terminal structure. We do see 9 waves up from the mid 2016 interim lows. There is no way to fit a non overlapping 1st and 4th wave within this structure though.
2. Equity index trends do very rarely end with spikes on increasing momentum. The October 2017 increase showed the highest MACD reading since 2014. The RSI went simply off the charts and reached the highest level in the past decade during the October move.
The Nikkei is still tracing out minor wave 3. It has just put in wave iii° of 3.
1. There is no clean wave structure that can fit the current pattern into a terminal structure. We do see 9 waves up from the mid 2016 interim lows. There is no way to fit a non overlapping 1st and 4th wave within this structure though.
2. Equity index trends do very rarely end with spikes on increasing momentum. The October 2017 increase showed the highest MACD reading since 2014. The RSI went simply off the charts and reached the highest level in the past decade during the October move.
The Nikkei is still tracing out minor wave 3. It has just put in wave iii° of 3.
Trade closed: target reached
Comment:
+3.5%
Our Nikkei forecast remains a push into the 24,000-25,000 points area for the current swing over the next weeks. We expect this to occur on decreasing momentum relatively to minute wave iii°