According to short-term Elliott Wave analysis on Nikkei (NKD), the index is anticipated to experience a retracement to around 38136, marking the low on March 12, 2024, which concluded wave 4. The index is expected to resume its upward movement in wave 5. The ongoing rally since the low on March 12, 2024, is identified as a 5-wave impulse.
The wave ((i)) ended at 39055 after the low of wave 4. Subsequently, a pullback in wave ((ii)) unfolded in a zigzag pattern, with wave (a) ending at 38310, wave (b) at 38740, and wave (c) at 38155. The index then resumed its upward trajectory in wave ((iii)).
After the pullback in wave ((ii)), wave (i) concluded at 38650 and wave (ii) at 38390. The subsequent wave (iii) ended at 39850, followed by wave (iv) pullback to 39505. The final leg, wave (v), concluded at 40960, completing wave ((iii)).
A corrective wave ((iv)) followed, unfolding in a zigzag Elliott Wave structure, with wave (a) ending at 40490, wave (b) at 40680, and wave (c) at 40025, completing wave ((iv)). The index has since resumed its upward movement in wave ((v)).
Following wave ((iv)), wave (i) reached 40530, with dips in wave (ii) ending at 40275. In the near term, as long as the pivot at the 38136 low remains intact, the index is expected to continue to climb higher.
Nikkei (NKD_F) 60 minutes Elliott Wave chart
