The Nikkei 225 (N225) Elliott Wave analysis on both the daily and weekly charts indicates a bullish trend with strong upward momentum. On the daily chart, the index is in an impulsive phase within orange wave 3, part of the broader cycle in navy blue wave 3. This suggests the index is in an upward phase, with orange wave 3 actively progressing, driving further gains as it advances within navy blue wave 3. The completion of orange wave 2 confirms the start of this new upward phase, indicating a series of likely upward moves.
Similarly, the weekly Elliott Wave analysis for the Nikkei 225 also reflects a bullish trend, marked by an impulsive structure in navy blue wave 3, part of the broader gray wave 3. This sustained upward momentum is supported by the completion of navy blue wave 2 and the ongoing robust movement of navy blue wave 3. The impulsive nature of navy blue wave 3 suggests further gains with higher highs and higher lows, reinforcing the bullish market sentiment and indicating continued upward movement.
The next higher degree direction for both the daily and weekly charts aligns with the ongoing upward movement of navy blue wave 3, indicating a positive trajectory within the current wave structure. A critical reference level is set at 35,109, serving as the invalidation point for the current wave structure. As long as the index remains above this level, the bullish wave count is valid, supporting the ongoing upward trend in the Nikkei 225 and indicating further gains in the future.
In conclusion, the technical analysis by Malik Awais suggests a strong bullish trend for the Nikkei 225, with both the daily and weekly charts pointing towards sustained upward momentum in navy blue wave 3. The impulsive nature of the current wave structures indicates a robust upward movement, with higher highs and higher lows likely to continue as the bullish trend progresses. Traders and investors can use the 35,109 level as a key reference point to confirm the validity of the current wave count and anticipate further gains in the Nikkei 225.
