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NIKKEI 225 (N225) Elliott Wave Analysis Trading Lounge Day Chart

NIKKEI 225 (N225) Elliott Wave Technical Analysis

FUNCTION: Trend

MODE: Impulsive

STRUCTURE: Navy Blue Wave 1

POSITION: Gray Wave 3

DIRECTION NEXT LOWER DEGREES: Navy Blue Wave 2

DETAILS: Gray Wave 2 appears to be complete, with Navy Blue Wave 1 currently unfolding.

Wave Cancel Invalid Level: 30,308

The NIKKEI 225 Elliott Wave Analysis on the daily chart concentrates on the ongoing market trend, described as impulsive. This analysis outlines the structure of Navy Blue Wave 1, which is now active. This wave is part of the larger Gray Wave 3, indicating a robust upward momentum in this wave sequence.

Prior to Navy Blue Wave 1, Gray Wave 2, a corrective phase, seems to have concluded. With Gray Wave 2 deemed complete, the market has transitioned into the impulsive Navy Blue Wave 1. This shift signals the start of a new upward phase, indicating a continuation of the broader trend within the NIKKEI 225 index.

As the market advances within Navy Blue Wave 1, the next anticipated phase is Navy Blue Wave 2, likely to bring a corrective move following the completion of the current impulsive phase. However, the main focus remains on the formation and completion of Navy Blue Wave 1, which is currently propelling the market upwards.

A critical level to watch in this wave analysis is the wave cancel invalid level, set at 30,308. This threshold is essential, as falling below it would invalidate the current Elliott Wave count. If the market drops below this level, it could indicate that the anticipated upward movement within Navy Blue Wave 1 may not occur as expected, potentially signaling a change in market direction.

In summary, the NIKKEI 225 Elliott Wave Analysis on the daily chart suggests that the market is in an impulsive phase within Navy Blue Wave 1, following the completion of Gray Wave 2. The analysis indicates continued upward movement, with the invalidation level at 30,308 being crucial to confirming the ongoing wave structure.

NIKKEI 225 (N225) Elliott Wave Analysis Trading Lounge Weekly Chart

NIKKEI 225 (N225) Elliott Wave Technical Analysis

FUNCTION: Trend

MODE: Impulsive

STRUCTURE: Gray Wave 3

DIRECTION NEXT HIGHER DEGREES: Gray Wave 3 (Started)

DETAILS: Gray Wave 2 appears to be complete, with Gray Wave 3 now in progress.

Wave Cancel Invalid Level: 30,308

The NIKKEI 225 Elliott Wave Analysis on the weekly chart highlights a strong upward trend currently underway. The market is described as impulsive, indicating a clear and sustained movement, specifically within the structure of Gray Wave 3. This wave represents a significant phase of market activity that is contributing to the overall upward trend.

Before this current wave, the market completed Gray Wave 2, a corrective phase that offered a temporary pullback in the market’s trajectory. With Gray Wave 2 now considered complete, the focus has shifted to Gray Wave 3, which has begun and is driving the market higher. This suggests that the market is now in a powerful and potentially enduring phase of upward momentum.

As Gray Wave 3 advances, it marks an important stage in the Elliott Wave cycle, with expectations for continued upward movement. This wave represents the continuation of the broader trend, implying that the market is likely to experience further gains as this wave develops.

The analysis points to a critical invalidation level at 30,308. This level is crucial because if the market falls below this point, it would invalidate the current Elliott Wave count. Such a move would imply that the expected upward trend within Gray Wave 3 might not proceed as anticipated, potentially signaling a shift in market direction.

In summary, the NIKKEI 225 Elliott Wave Analysis on the weekly chart suggests that the market is currently in an impulsive Gray Wave 3, following the completion of Gray Wave 2. The analysis indicates that the upward trend is likely to continue, with the invalidation level at 30,308 being a key point to monitor for confirming the ongoing wave structure.

Technical Analyst: Malik Awais

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