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Nikkei Futures bounce after hitting an Elliott Wave buying zone
The setup turned risk-free after price reached a 50% Fibonacci retracement, with stops moved to breakeven and partial profits taken.
Action Forex outlines an Elliott Wave based trading setup for Nikkei Futures, saying a recent pullback completed a corrective (a)(b)(c) pattern and ended near an identified equal legs area, the Blue Box.
The analysis expects the structure to act as a buyer re-entry point for a potential three wave bounce, based on the view that the broader corrective cycle from a 62,451 low was not yet fully complete.
Action Forex says the forecasted decline reached the Blue Box region, then reacted strongly, and that once price hit the 50% Fibonacci retracement of the rally from wave (b), long positions were deemed risk-free by moving stop losses to breakeven while taking partial profits.
The trade would be invalidated only if price broke below the 1.618 Fibonacci extension level at 64,340, according to the technical framework described by the outlet.
Latest closeNikkei 225 67,743.85 ▲1.4%