Hello Traders,
HangSeng topped on January 3 @ 28883.3 and create from a „candle-stick“ view a „dark-cloud-cover-formation, which is bearish. The following days HS shows some gap`s to the downside and achieved at today`s session a 0.382 Fibonacci of the advance from the possible wave „2“ low @ 26364.4-28883.3, a possible wave „3“ high. So this is a common target range for a wave „4“ correction and it could be all of the correction.
From a „time“-perspective the correction look to my to „short“ and I think, that it is just a wave „a“ of an a-b-c-pattern that is still developing. So after a short term countertrend move within a wave „b“ up, another leg of weakness could hit HS with lower prices to come. A target zone therefor is around 27675, a wave „4“ level of lesser degree.
Notice how price has met the uprising „base-channel“ of the first wave (1) and (2) and touched the upper boundary. This could be a second hint that the advance has come to an end or is close to doing so.
While a wave „4“ can never touch the price territory of a wave „1“ there is a wide price level to make this count invalid. This level is @26527.
So, I will update the chart in the coming hours.
Have a great week....
ruebennase
Feel free to ask or comment.
Trading this analysis is at your own risk!
HangSeng topped on January 3 @ 28883.3 and create from a „candle-stick“ view a „dark-cloud-cover-formation, which is bearish. The following days HS shows some gap`s to the downside and achieved at today`s session a 0.382 Fibonacci of the advance from the possible wave „2“ low @ 26364.4-28883.3, a possible wave „3“ high. So this is a common target range for a wave „4“ correction and it could be all of the correction.
From a „time“-perspective the correction look to my to „short“ and I think, that it is just a wave „a“ of an a-b-c-pattern that is still developing. So after a short term countertrend move within a wave „b“ up, another leg of weakness could hit HS with lower prices to come. A target zone therefor is around 27675, a wave „4“ level of lesser degree.
Notice how price has met the uprising „base-channel“ of the first wave (1) and (2) and touched the upper boundary. This could be a second hint that the advance has come to an end or is close to doing so.
While a wave „4“ can never touch the price territory of a wave „1“ there is a wide price level to make this count invalid. This level is @26527.
So, I will update the chart in the coming hours.
Have a great week....
ruebennase
Feel free to ask or comment.
Trading this analysis is at your own risk!