Nikkei is being rejected by the upper channel resistance line
On the Monthly Nikkei chart, we can see that the pair is testing Andrew’s Pitchfork long-term uptrend channel resistance line 30700. It has been rejected from it and is pulling back within the channel to test the second channel midline 28000. If we get a breakout lower then we could see a continuation to 24100 also the median line of the channel.
On a Weekly chart, we can see a new uptrend Pitchfork channel formed and the instrument has broken below this consolidation triangle after a rejection from the uptrend resistance line. This is giving us a good opportunity to short the instrument with a good risk to reward. It s viable to go short with the stop loss above 29130 to target 26130 and lower.
We have used the combination of the top-down trading analysis to get these key levels explained in the charts. To learn more about Andrews’s Pitchfork tool trading strategy register for education.
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