Elliott Wave View: Nikkei (NKD) Searching for Support

Nikkei Futures (NKD) is presently at the 100% – 161.8% Fibonacci extension from February 16, 2021 high and the Index is searching for support. Short Term view suggests that the decline from November 16, 2021 high is unfolding as a 5 waves impulse structure. Down from November 16, 2021 high, wave 1 ended at 27390 and rally in wave 2 ended at 29420. The Index then resumed lower in wave 3 towards 26050 and wave 4 bounce ended at 27897. Wave 5 is now in progress with internal subdivision as another impulse in lesser degree.

Down from wave 4, wave (i) ended at 26845 and rally in wave (ii) ended at 27555. Index then resumed lower in wave (iii) towards 26550 and rally in wave (iv) ended at 27025. Index is expected to complete wave (v) soon and this should complete wave ((i)) in higher degree. Afterwards, Index should rally in wave ((ii)) to correct cycle from February 10, 2022 high before the decline resumes. Near term, as far as pivot at 27897 high stays intact, expect rally to fail in 3, 7, or 11 swing for further downside. Potential target for wave 5 lower is 123.6 – 161.8% external retracement of wave 4 at 24905 – 25615 area.