JP225 (Nikkei) has come back down to retest the uptrend line and now it could jump higher. Still, we need confirmation before considering going long on this one. A downside breakout could invalidate the bullish scenario.
The selling pressure is still high in the short term. I believe that only a strong reversal pattern around the current levels could announce a new upside momentum.
JP225 is trapped within a major symmetrical triangle. This could represent a continuation pattern if the rate makes an upside breakout from it.
Now, the stock index located at 28,897 above the uptrend line. False breakdowns or several retests could attract more buyers in the short term. Nikkei stays near 150% Fibonacci line of the major descending pitchfork, so only a new higher high could bring us a new long opportunity.
Stabilizing above the uptrend line and jumping above 29,322 could confirm more gains ahead. The major upside target is seen at the triangle’s upside line.
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