Nikkei Elliott Wave View: Ending impulsive 5 waves
Short term Elliott Wave view in Nikkei ( NKD_F) suggests that the decline to 4/16 low (18255) ended primary wave ((4)). Up from there, the rally is unfolding as an impulse Elliott wave structure where Minute wave ((i)) ended at 18590, Minute wave ((ii)) ended at 18315, Minute wave ((iii)) ended at 19355, and Minute wave ((iv)) ended at 19170 low. Near term index has reached the minimum extension area in Minute wave ((v)) already, however another push higher towards 19579 area can be seen before index ends cycle from 4/17 lows in Minor wave A. Afterwards index is expected to see a pullback in 3, 7 or 11 swings within Minor wave B before further upside is seen. We don’t like selling the proposed pullback and expect buyers to appear again once Minor wave X pullback is complete in 3, 7, or 11 swing provided that pivot at 4/16 low (18255) remains intact.
Nikkei 1 Hour Elliott Wave Chart
Nikkei ( NKD_F) Elliott Wave View: Diagonal Structure
Short term Elliott wave view in Nikkei suggest that the cycle from August 29.2017 low (19055) is unfolding in 5 waves pattern. However looking at the internal subdivision of each wave the bounce looks corrective in nature with upside extensions. Thus suggesting that the Nikkei cycle from August 29 low (19055) could be following a leading Diagonal pattern in Minor wave A higher.
Where Minute wave ((i)) ended at 19740 peak as a flat structure, Minute wave ((ii)) ended at 19229. Minute wave ((iii)) ended at 20496 peak in 3 swings as zigzag structure. Where Minutte wave (a) ended at 19898 and Minutte wave (b) at 19765 low. Minute wave (((iv)) ended at 20131 low. From there Minute wave ((v)) remains in progress in 3 swings, where Minutte wave (w) ended at 20460, Minutte wave (x) at 20305 low. While above 20131 low, Index is expected to see further strength towards 20630 – 20707 to complete wave ((v)) of the Diagonal structure and then it should pull back in 3 waves at least. RSI divergence with respect to wave ((iii)) should remain intact with the next push higher for the diagonal ideal to remain valid. If RSI divergence is erased, then structure would become a triple three Elliott wave structure.
Nikkei 4 Hour Elliott Wave Chart
Nikkei Elliott Wave Analysis: Pullback Remains In Progress
Nikkei short-term Elliott wave view suggests that the rally to 23060 on May 20 high ended Intermediate wave (1) as an impulse. Down from there, the index is pulling back in Intermediate wave (2) pullback to correct cycle from March 23, 2018 low in 3, 7 or 11 swings before the rally resumes. The decline from 23060 high is unfolding as Elliott wave double three structure.
Double three is a 7 swing pattern, which is a combination of two corrective patterns, including Flats, Triangles, Triple three, Zigzag etc. The two corrective patterns combine together to form the double three structure. In the case of Nikkei, the decline from 23060 high to 22075 low ended Minute wave ((w)). The internals of Minute wave ((w)) unfolded as a Zigzag structure where Minutte wave (a) ended at 22475, Minutte wave (b) ended at 22640, and Minutte wave © of ((w)) ended at 22075.
From 22075 low, the bounce to 22560 high ended Minute wave ((x)) recovery as zigzag structure. The Index has since made a new low below 22075 and shows 5 swings bearish sequence from May 20 high (23060). Please note that 5 swing sequence is not the same as 5 waves impulse. 5 swing sequence refers to the swing count and refers to 7 swing WXY (double three structure). The 5 swing sequence favors more downside & confirms Minute wave ((y)) lower has started. The internals of Minute wave ((y)) is also unfolding as a Zigzag structure where Minutte wave (a) ended at 21920. Near-term, while bounces fail below 22560 high, expect the Index to see another extension lower towards 21350 – 21579, which is 100%-123.6% Fibonacci extension area of Minute ((w))-((x)). Afterwards, expect the Index to at least see a 3 waves bounce. We don’t like buying the Index.
Nikkei 1 Hour Elliott Wave Chart
Nikkei How Far Elliott Wave Correction Can Take Place?
Nikkei short-term Elliott Wave view suggests that the index is correcting the cycle from 3/23/2018 low (20190) in 3, 7 or 11 swings. Rally to 23005 high ended Minor wave X of a possible double correction lower. Down from there, Minor wave Y remains in progress with lesser degree cycle showing another double correction structure.
Below from 23005 high, the decline to 22270 low ended Minute wave ((w)) as Elliott Wave Zigzag structure. The internals of that decline ended Minutte wave (a) at 22585 low, Minutte wave (b) ended at 22710 high and Minutte wave © of ((w)) ended at 22105. Up from there, Minute wave ((x)) ended as double three at 22769 high. The internals of that bounce ended Minutte degree wave (w) at 22585. Minutte degree wave (x) ended at 22390 low and Minutte wave (y) of ((x)) ended at 22769 high. Down from there, Minute wave ((y)) is taking place with another double correction lower. The internals of that decline ended Minutte wave (w) at 22025 low and bounce to 22405 high ended Minutte wave (x).
Near-term, while rally stays below 22405 high, and more importantly the pivot at 22769 high stays intact, index is expected to turn lower 1 more time within Minutte wave (y) of ((y)) of Y lower approximately towards 21537 – 21811, which is the 100%-123.6% Fibonacci extension area of Minute wave ((w))-((x)). Afterwards, expect Index to resume higher or or bounce in 3 waves at least. We don’t like selling it and expect buyers to appear in 21537 – 21811 area above.
Nikkei Elliott Wave 1 Hour Chart
