Nikkei moved!

My last update on Nikkei was on Dow Jones, Nikkei and Hang Seng Up-date 1st Oct 2023. I maintained at the time that Nikkei was in a counter wave with a possible support at 55-week moving average.

This week, the low of Nikkei is at 30,388 while 55-week moving average was 30,359. It did not really touch but they were close. At the same time, I also mentioned of another support level of 30,868. This is the 100% projection support of the counter wave.

The upthrust this week is decisive crossing the previous high of 32,660 reaching a height of 32,827 closing at 32,747.

Are we seeing a continuation that I have been expecting?

Fig 1. Nikkei weekly chart

Considering a steep slope heading north while a gentle one downward, I was anticipating a continuation after a 3-wave correction. 

However, it seems that the upthrust this week is stopped by at minor 100% projection resistance created by a pull back after a seemingly reversal bar. I suspect that it may lead to a short correction ( 1 to 2 bars) before continuation. 

The next level of resistance will be 33,425. 

Why I think so?

This level coincides the 127% projection with the present level of Bollinger band.

Thereafter, Nikkei will challenge the resistance zone between 35,532 to 39,156, the later would be the 100% projection level of a major move. The objective will not be achieved in the near future though, it is a major move and there may still be lots of factors influencing its climb. 

Let us continue to monitor its progress.