Upon analyzing the 1-hour Elliott Wave Charts of Nikkei, it is evident that there was a bullish sequence in the rally from the 08 March 2022 low. This structure unfolded as an impulse, indicating a potential for more upside extension to complete the sequence. Members were advised against selling the index and instead encouraged to buy the dips at specific blue box areas in 3, 7, or 11 swings.
The cycle from the 10/04/2023 low ended in wave (3) at a high of 40960 on the 4/19/2024 Asia update. Subsequently, there was a correction in wave (4) where the index made a pullback. The correction unfolded as an Elliott wave zigzag structure with wave A ending at $38815 low, wave B bouncing to 39998 high, and wave C reaching the blue box area at 37815-36456. Buyers were expected to enter the market from this point, anticipating the next leg higher or a minimum 3-wave bounce.
In the most recent 1-hour Elliott Wave Chart from the 4/30/2024 NY update, the index displayed a reaction higher following the completion of the zigzag correction within the blue box area. Members were able to establish a risk-free position after taking a long position at this area. However, confirmation of the next extension higher towards 41954-43564 area is still pending, which would also help avoid a potential double correction lower.
The analysis of the past performance of Nikkei using 1-hour Elliott Wave Charts indicates a bullish sequence and potential for further upside extension. It is essential for traders and investors to carefully monitor the price movements, blue box areas, and key levels mentioned in the charts to make informed decisions and identify profitable trading opportunities in the market. The Elliott Wave principle provides valuable insights into market behavior and trends, allowing traders to anticipate potential price movements and adjust their strategies accordingly for optimal results.
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