The formation of NIKKEI225 shares suggests the development of an uptrend that moves within the bullish green channel. It is possible that since the second half of September, the market has been forming a downtrend that moves inside the yellow channel.
Currently, the price is in the lower green area, as well as near the upper yellow line. Thus, there are two possible scenarios.
In the first variant, a downward movement of the price is expected in the direction of the support level of 27754, which is located on the lower line of the green channel. With a successful breakdown of this price level, the bears will open the way to the lower green wall and the support level of 25799.
In the second variant, market participants expect an upward trend. Perhaps the bulls will push the market to the upper yellow line, and in case of a breakdown of the resistance level 29398, which is located on it, we should expect more rapid growth to the next important resistance level of 31944, which is located on the upper green line.
If the market moves according to the first option, then it is worth considering opening sales deals. When confirming a bullish movement, it is recommended to consider opening long positions.
Perhaps we will continue to observe these shares further.
