Analysis Summary
Resistance Zone and Weak High: The price previously reached a high around 40,200, forming a weak high within a resistance zone. If the price approaches this level again, it may encounter selling pressure, but a breakout could signal a continuation of the bullish trend.
Break of Structure (BOS) and Change of Character (CHoCH): The recent BOS and CHoCH events indicate a potential shift in momentum. The BOS on the upside suggests a bullish structure, but the CHoCH warns of a possible retracement.
Demand Zone Support: A significant demand zone lies between 38,690 and 38,234. This area may act as a support level if the price retraces down to it, providing a potential base for a bullish reversal.
Potential Reversal Target: If the price finds support in the demand zone and reverses upward, the weak high and resistance zone around 40,200 could be the primary target for a bullish move.
Potential Scenarios:
Bullish Reversal from Demand Zone: If the price moves into the demand zone (38,690–38,234) and finds buying interest, a bullish reversal could follow, targeting the weak high around 40,200. This would align with the bullish structure indicated by the recent BOS.
Continuation of Bearish Retracement: If the price fails to hold in the demand zone, a further decline toward lower support levels would be possible, which would weaken the bullish outlook.
Conclusion
The Nikkei 225 is approaching a demand zone, where a bullish reversal could emerge, supported by the recent BOS indicating an uptrend. Traders may look for buying opportunities within 38,690–38,234, aiming for a potential upside move toward 40,200. Monitoring price action in the demand zone will be crucial for confirming the reversal setup.
Resistance Zone and Weak High: The price previously reached a high around 40,200, forming a weak high within a resistance zone. If the price approaches this level again, it may encounter selling pressure, but a breakout could signal a continuation of the bullish trend.
Break of Structure (BOS) and Change of Character (CHoCH): The recent BOS and CHoCH events indicate a potential shift in momentum. The BOS on the upside suggests a bullish structure, but the CHoCH warns of a possible retracement.
Demand Zone Support: A significant demand zone lies between 38,690 and 38,234. This area may act as a support level if the price retraces down to it, providing a potential base for a bullish reversal.
Potential Reversal Target: If the price finds support in the demand zone and reverses upward, the weak high and resistance zone around 40,200 could be the primary target for a bullish move.
Potential Scenarios:
Bullish Reversal from Demand Zone: If the price moves into the demand zone (38,690–38,234) and finds buying interest, a bullish reversal could follow, targeting the weak high around 40,200. This would align with the bullish structure indicated by the recent BOS.
Continuation of Bearish Retracement: If the price fails to hold in the demand zone, a further decline toward lower support levels would be possible, which would weaken the bullish outlook.
Conclusion
The Nikkei 225 is approaching a demand zone, where a bullish reversal could emerge, supported by the recent BOS indicating an uptrend. Traders may look for buying opportunities within 38,690–38,234, aiming for a potential upside move toward 40,200. Monitoring price action in the demand zone will be crucial for confirming the reversal setup.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.