The analysis of the short-term Elliott Wave view in Nikkei Futures (NKD) suggests that a rally to 40960 marked the end of wave 3. Currently, the market is experiencing a pullback in wave 4, which is unfolding as a double three Elliott Wave structure. The internal subdivision of wave 4 indicates that we have seen wave (a) ending at 40025, followed by wave (b) at 40805, and wave (c) concluding at 39285. This movement completed wave ((w)) in a higher degree.
Following the completion of wave ((w)), the Index bounced in wave ((x)), reaching a peak at 40324. However, the market extended lower in wave ((y)), with wave (a) ending at 38815 and wave (b) at 39995. Presently, wave (c) is in progress, unfolding as a 5-wave structure. Looking closer at wave (c), we see that wave i concluded at 38830, followed by wave ii at 39540, wave iii at 38335, and wave iv at 38695. Anticipate the Index to soon complete wave v of (c) of ((y)), ultimately wrapping up wave 4 in a higher degree.
Once wave 4 reaches completion, we can expect the Index to either extend higher or turn upwards in 3 waves at the very least. Traders and investors should keep an eye on the support area ranging from 37582 to 38626, marked by the blue box area. This region may serve as a potential zone for buyers to step in and influence the market direction.
By analyzing the wave patterns and internal subdivisions of the current Elliott Wave structure in Nikkei Futures (NKD), traders can gain valuable insights into potential price movements. It is crucial to remain vigilant and adaptable to changing market conditions in order to make informed trading decisions based on the evolving wave patterns.