Hello, traders and friends. I hope you all doing well.
Let's delve into NIKKEI chart and explore why we believe there may be a potential Buying opportunity.
The three-wave bearish corrective nature of this downward leg, following a bullish impulsive wave we observed on the chart, suggests the possibility of another bullish move, potentially testing at least the upper boundary of our longer-term bearish trendline channel.
Supportive confluences that we have observed include the inner trendline, which has acted as both resistance and support multiple times, indicating traders' awareness of its significance. Additionally, the price has reached a static support line and a demand area from above, both of which serve as important support levels. Furthermore, the price retraced around 50% of the Fibonacci level of the last bullish move.
Additionally, we've observed the formation of a 4-hour bullish engulfing candle, which can be seen as a trigger for this potential buying setup.
If you have found this analysis helpful, please take a moment to leave a like and a comment or share your idea with me.
Let's delve into NIKKEI chart and explore why we believe there may be a potential Buying opportunity.
The three-wave bearish corrective nature of this downward leg, following a bullish impulsive wave we observed on the chart, suggests the possibility of another bullish move, potentially testing at least the upper boundary of our longer-term bearish trendline channel.
Supportive confluences that we have observed include the inner trendline, which has acted as both resistance and support multiple times, indicating traders' awareness of its significance. Additionally, the price has reached a static support line and a demand area from above, both of which serve as important support levels. Furthermore, the price retraced around 50% of the Fibonacci level of the last bullish move.
Additionally, we've observed the formation of a 4-hour bullish engulfing candle, which can be seen as a trigger for this potential buying setup.
If you have found this analysis helpful, please take a moment to leave a like and a comment or share your idea with me.
Trade closed: stop reached:
While there is still a chance that the price could continue trading higher from its current position, considering it has reached the 61.8% Fibonacci level of the previous bullish move and the 100% trend-based Fibonacci extension, alongside other supportive confluences visible on the chart, such as the lower boundary of the long-term bearish channel, our timing for initiating a long position on this index was unfortunate and resulted in a minor loss. Nevertheless, we remain interested in this chart and will continue to monitor it, with the potential intention to open another long position in the future. please consider taking a moment to leave a like, a comment, or share your own insights with me.