The Nikkei 225 index, Japan’s leading stock market benchmark, has been showing mixed performance recently. As of October 18, 2024, the index was trading at 38,981.75, reflecting a slight gain of 0.18% for the day. Several stocks have contributed to these movements, with notable gains from companies like Meidensha Corp and Mitsubishi Heavy Industries, which saw their stock prices rise over 22% recently. On the other hand, Tokyo Electron and ENEOS Holdings have experienced significant declines.
Nikkei is breaking out above 39000 to obtain an extension higher in the fifth wave to 43000 and possibly higher. It is in a mature bullish phase within an uptrend channel. Only a break below 36800 can lead to an invalidation of the fifth wave. Learn to Trade stocks profitably.
The Weekly Nikkei chart reveals a pullback for a test of the previously broken upside resistance 39200. At this point, the buy positions have a greater probability of success. Overall support for the upside even if it breaks below 36800 is 36200 and the final long-term support for a bullish trend invalidation is much lower at 30300 which means that the uptrend is still very strong and the counter trades are not an option. Following the price action we need to see a break above 40000 for a continuation higher and an extension to 43600.
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As the famous trader says…
“In trading and investing, patience is a virtue, panic is not.”
Peter Lynch
How to trade this?
It is a fact that a strong upside resistance for Q4 2024 is 3900 and If we get a confirmed break above this level we could see a strong upside continuation for 43000 in the fifth long-term upside Elliott Wave. Near-term, long trades as well as call options are in play. Take the long trade here with a stop loss just below 38000. You can trade with call options as well. For inquiries about account management or copy trading please write to [email protected] or contact me on WhatsApp or Live chat.
