SimpleFX NIKKEI225 Chart Analysis: August 3, 2022
The NIKKEI225 structure shows the development of an uptrend that moves within the green channel. We see that since the end of March, the market has been moving from the upper green area towards the lower green line.
In the second half of June, 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 sharply declined. However, the bears were stopped by the yellow support line. Over the past month, the price has been growing from the lower line of the yellow channel to its upper wall.
There is a high probability that in the near future the bulls will continue to push the price up, in the direction of the resistance level of 28560. If this level is broken, the stock may rise to the next level of 29486, which is located on the upper green line.
Alternatively, it is assumed that after the last pullback from the upper yellow wall, the market turned around and a bearish movement began in the direction of the lower yellow support line. If the level of 27039 is broken, market participants may expect a continued fall in value to the level of 25991, which is located on the lower wall of the green channel.