The current structure of NIKKEI225 shows the development of a downtrend that moves within the green channel. We see that since the beginning of this year, the market has been moving from the upper green area toward the lower green line.
In the first half of March, the price touched the lower green wall. After that, we saw a sharp upward movement within the yellow channel. In a short period of time, the price reached the upper yellow wall. The bulls were unable to break through the upper resistance line of this channel, so the stock price went down. In the last section of the chart, we see how the price has fallen from the upper green wall to the lower yellow line.
There is a high probability that in the near future the bears will re-approach the lower support line of the yellow channel. If the level of 25610 breaks, the stock may collapse to the next support level, which is located on the lower green line, i.e. to 23388.
Alternatively, it is assumed that after the last pullback from the lower yellow wall, the market turned around and an upward movement began in the direction of the upper green line. If the bulls can reach the resistance level of 28107 and then break through it, then the way will open for them to further grow to the upper yellow line and the resistance level of 29292.
