Nikkei 225 went up 3% on Wednesday, closing at 28,040. One of the main growth engines was SoftBank Group, which gained 7.22%. Let’s see what we can expect next.
The current formation indicates that NIKKEI225 shares are developing 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 line toward the lower green line. The price touched the lower green wall in the first half of last month. After that, we saw a sharp upward movement within the yellow channel.
SimpleFX NIKKEI225 Chart Analysis: April 14, 2022
Recently, the price touched the upper yellow wall. Then we saw a rapid downward movement towards the lower yellow line. If the bears have enough strength to lead the market, the price will continue to fall in the coming trading weeks. The first target where the bears are aimed is the support level of 26591. If the level is broken, the path to the lower green line and the support level 23953 will open.
Alternatively, it is assumed that the market has turned around and an upward movement has begun in the direction of the upper green line. If the bulls can reach the resistance level of 28195 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 30279.
An approximate scheme of possible future price movement is shown on the chart.