Nikkei is the Japanese stock exchange average price-weighted index and is calculated since 1950. It consists of 225 best companies from a wide range of industries, like pharmaceuticals, shipbuilding, automotive, banking, construction, steel, real estate, etc. Mentioning the real estate sector, was the one, which provoked Japan’s economic bubble between 1986 – 1991, when the uncontrolled credit expansion made up an overheated economy, which resulted was to burst and create a stagflation spiral, from 1992 till 2009.
Weekly Range: Looking Higher in wave ((3))
From the high of wave III, the Nikkei 225 index fell in three waves for wave (W)) that ended at 14205, then bounced in three waves for wave (X)) that ended at 20833,Then declined again in three waves which completed wave ((Y)),
From the low of wave IV at 7030, the Nikkei index pushed higher in five waves in wave ((1)) of primary wave that ended at 24560, then retreated in wave 2 that completed at 16300,
The ongoing rally in Japan is viewed as primary wave ((3)). The latest pullback is viewed as wave (2) of ((3)) that should give way to a strong move higher into the new year in a third of a third impulse wave,
The reasonable upside target for wave ((3)) at 2022 is 44130, where wave ((3)) would achieve a typical 1.618 multiple of wave ((1)),
On the downside, the upper trend line of the base channel near 27060 should remain strong near-term support.
Elliott Wave Video For Nikkei 225
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