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Nikkei 225 JPN225 CFD

Japanese Stock Index "Nikkei 225" Can Lose 30% in the CorrectionNikkei 225 (JP225), commonly known as Nikkei, is a stock index for the Tokyo Stock Exchange, the world’s third-largest stock exchange with a market capitalization of US$5.6 trillion. As the leading index of Japanese stocks, Nikkei 225 (JP225) is a price-weighted stock index, equivalent to the American Dow Jones Industrial Average Index, comprising Japan’s most powerful 225 blue-chip companies on the Tokyo Stock Exchange. Let’s take a look at Nikkei's structure via the Elliott Wave principle. The monthly chart above reveals that the 2009-2018 rally had formed a textbook five-wave impulse pattern. It is labeled 1-2-3-4-5 where the five sub-waves of wave 3 is visible. Unfolding Correction Makes Nikkei 225 Bulls Vulnerable The Elliott Wave theory states that a three-wave correction in the opposite direction follows every impulse. And indeed, the decline from 24595 to 18951 in 2018 can be seen as a simple a-b-c zigzag in wave A. The Nikkei 225 spent the entire 2019 trying to recover from that low and top at 24412 in December 2019 as a three-wave zigzag in B. This three-wave down and three-wave up pattern make JP225 vulnerable to further decline as it only a part of larger A-B-C flat or W-X-Y double zigzag Elliot Wave correction. Bearish targets near the support area of wave 4 or lower are plausible. If this assumption is correct, we can expect another selloff in wave C to approximately 15000 from the current level. That's a ~33% drop, I think now is not the time for bravery when it comes to the Nikkei 225 or investing in Japan's stock blue chip. Observing from a safe distance makes more sense. Do you think a 30% decline is plausible on Nikkei?
OANDA:JP225USDShort
by Veejahbee
Equity Markets More Downside? Swing to Form.Have been speaking about the equities showing interesting exhaustion patterns. Well, we had the break and quite the run lower. Today, the day before the Fed, we have had a move up. Many already saying look how strong the market is, shaking off fears of the coronavirus and other world events. Not so fast, market structure was expecting this pullback, and until we close above the previous break out zone, we can still make another lower high swing. To preface, I expect markets can still go higher because there is nowhere to go for yield. I have spoken about this in many posts. Equities is the only place to go for yield with central banks depressing interest rates. Central Banks can control the short term rates, but not the long term rates. QE was a way to manage long term rates by effectively purchasing long term bonds, thereby depressing long term interest rates. The world has been forced to go into real estate or stocks for yield. Pension funds especially, who have always been very much into fixed income, but now cannot make their 8% a year when some pension funds are from 60%-100% in bonds. I argue these pension funds have been forced into stocks, and if stocks ever fall a lot, there will be big issues. Of course, the Fed will keep this market up with cheap money. Again, they are forcing money into stocks as it is the only place to go for yield. We have Fed chair Powell speaking tomorrow, and the Fed is expected to NOT cut interest rates. However, Powell will still have to present a dovish stance to appease markets. Hopefully it is not another boring press conference like December, where it seemed like the Fed was stalling. Again, we do expect stocks to pullback here and there. This is normal for market structure. Presented are a multitude of equity set ups with nice charts. All of them have had an uptrend, and a stalling/exhausting pattern. These are either ranges or even potential head and shoulders forming. With this in mind, we should expect a lower high which is not formed and we are expecting potential lower highs to form in these set ups. Again, the safe way to play this trade is to await the lower low break to CONFIRM the lower high. If we break above the breakout zones then this is nullified, which can potentially happen as I have presented why money has to be in equities. The S&P had a nice double top pattern and a break below the flip zone. It has extended quite a lot and naturally we were expecting a pullback. Will it go all the way back to the break out zone at 3310? Or will we see some action at these fib levels. The Nasdaq breakout did not look as good as the S&P's because we would have liked to see a pattern. Was hoping for a head and shoulders with a bounce up before breaking below 9111 but it did not happen. Now we await for a lower high. The Russell 2000 setting up a head and shoulders on the daily potentially. The Nikkei 225 as well. Double top as well. The German Dax has a set up on the daily, but still requires a long way down before testing the big support zone on the daily chart. There is a play here on the 4 hour chart that looks appealing. Again, awaiting the swing. The UK FTSE retesting the breakout zone, although I would avoid due to the Brexit deadline coming up. The French CAC had a nice break of a flip zone. The Spanish IBEX/ESP also similar. Euro Stoxx 50 is interesting because although the chart looks similar to the CAC and IBEX, the exhaustion occurred at a major resistance zone, at previous all time highs. Perhaps the cleanest is the AUS200. Again, retesting a break out zone and potentially can form a lower high. You can see the break out and move lower is very extended. Overall, this is normal for market structure. We shall see if we get the first swing, and potentially another swing.
OANDA:SPX500USD
by Uncharted-FX
6
Nikkei: Potential pull back towards the 1D MA200.Nikkei has been on a strong 1D uptrend since the August rebound on the 20,115 1W Support and just recently 1D turned neutral (STOCHRSI = 53.869, ADX = 18.607, Highs/Lows = 0.0000) showing possible signs of exhaustion. The 1D RSI is on a bearish channel, diverging from the price action and that could be a first sign of a short term trend change. We have traced this behavior back on the last time NI225 had a Golden Cross bull run of a similar pattern and that was in late 2016 - early 2017. After the bull run took a pause on January 2017, the RSI also printed a bearish divergence and the index consolidated for roughly 2.5 months before pulling back towards the 1D MA200. That was the first important test of that uptrend and was successful as the price rebounded on the 1D MA200 which acted as a Support all the way until the January 2018 High. We are expecting a similar behavior this time also and advice investors to wait for a pull back near the 1D MA200 before buying again and target the 24,450 1M Resistance. We want to point out at this stage that Nikkei's horizontal levels have been working well enough on the long term and this is what helped us buy the pull backs on the Support Zones before, as you see on the chart below: ** If you like our free content follow our profile (www.tradingview.com) to get more daily ideas. ** Comments and likes are greatly appreciated.
TVC:NI225
by InvestingScope
1
JPN225: Nikkei potentially confirming a yearly uptrend soon...The Nikkei has been in an insane climb lately, and Japan as a whole, has been presenting more attractive valuations overall, than US or Europe stocks. Personally, I'm long EM equities, and some US ones, but, Japan does have a valid uptrend in the intermediate term, and soon in the long term as well. One concern you may have is mainly demographic, if you factor in the population aging, which could contribute to a slow down of growth over the long haul, as well as potential geopolitical risks, being so darn close to 'Rocket man'. Talking of Rocket man, did you know there was a Megaman prototype game called like that, before it was called Rockman X in Japan? I didn't either: www.youtube.com Funny stories aside, wether Trump is a Megaman fan or not, this is a significantly interesting chart to monitor for bullish setups in select japanese equities. Best of luck, Ivan Labrie.
FX:JPN225Long
by IvanLabrie
1