Analysis of Nikkei Futures Short-Term Elliott Wave View

Analysis of Nikkei Futures Short-Term Elliott Wave View

The short-term Elliott Wave view in Nikkei Futures (NKD) indicates that the rally to 40960 marked the end of wave 3. Currently, the market is experiencing a pullback in wave 4, which is unfolding as a double three Elliott Wave structure.

The downward movement from wave 3 saw wave (a) ending at 40025 and wave (b) ending at 40805. The following wave (c) reached a low of 39285, thus completing wave ((w)) in a higher degree. Subsequently, the Index bounced in wave ((x)), reaching a high of 40324 as illustrated in the 1-hour chart. The continuation of the decline is being depicted in a zigzag structure within wave ((y)).

Breaking down the wave ((y)), wave (a) concluded at 38815 and wave (b) finished at 39995. Currently, wave (c) is in progress and displaying a 5-wave pattern. The downward movement from wave (b) saw wave i ending at 38830 and wave ii concluding at 39540. The subsequent wave iii came to a stop at 38335, followed by wave iv at 38695. The anticipation is for wave v of (c) of ((y)) to conclude soon, thus finalizing wave 4 in the higher degree structure.

Looking ahead, once wave 4 reaches completion, the Index is expected to either extend higher or turn upwards in at least 3 waves. The critical support region lies within the 37582 – 38626 blue box area, where potential buyers may step in to support the market.

Through a detailed analysis of the short-term Elliott Wave view in Nikkei Futures, it becomes evident that the market is currently undergoing a corrective phase following the completion of wave 3. The internal structure of wave 4, as well as the subdivision of wave ((y)), provides insight into the potential future price action of the Index. Traders and investors alike should keep a close eye on the support area highlighted, as it could play a crucial role in determining the direction of the market in the coming sessions.

Technical Analysis

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