Chart of the day

Where do we stand fundamentally?

NIKKEI grinding higher on good prospects of the Japanese economy and the easy monetary policy. BOJ recently started hiking but it is not affecting the market yet.

NIKKEI is supported is testing the consolidation triangle resistance 39000 for a continuation higher in an extended fifth wave. Deeper pullback and an invalidation of immediate extension higher should happen upon a break below 38500.

An invalidation level of a fifth wave long-term extension higher is 36000. This extension higher could lead to 45000 target in the medium-term to long-term upon a break above 40000 again and a bounce from 39000.

_{To join the trend and take advantage of the bullish cycle look for a long trade entry with a stop loss below 38500 to target 41000 at least. You can trade it with options as well.}