Hello Traders,
Hang Seng is expanding his weakness during the mass protest in Hong Kong. Massive violence is floating in the streets of the megacity and the Chines government is hardens his rhetoric! More often than not in the past, such a high level of negative social mood support an important low in an index. But it is not required.
For the short term, HS declined today to 25281 on a closing basis and move closer to the wave „c“ of (ii) low of January 19, 2019.
There is not much room left for the bulls to turn the trend again to the upside and a decline below this low could indicate that at 30280 a major top was in place. On the other hand, today's low fulfills the minimum expectation for a wave „5“, while making a lower low as wave „3“ was. Maybe the index needs one more up-down sequence to end his decline, HS has to turn his short term trend immediately.
If the index is heading toward lower lows, one objective target area is around 24994-25000 area, were wave „(5)“ =“(1)“! Another target range exists at a lower level, but this would make the bullish count invalid and turn the trend to the downside.
I will update the chart in the coming hours.
Have a great week...
ruebennase
Feel free to ask or comment.
Trading this analyze is at your own risk!
Hang Seng is expanding his weakness during the mass protest in Hong Kong. Massive violence is floating in the streets of the megacity and the Chines government is hardens his rhetoric! More often than not in the past, such a high level of negative social mood support an important low in an index. But it is not required.
For the short term, HS declined today to 25281 on a closing basis and move closer to the wave „c“ of (ii) low of January 19, 2019.
There is not much room left for the bulls to turn the trend again to the upside and a decline below this low could indicate that at 30280 a major top was in place. On the other hand, today's low fulfills the minimum expectation for a wave „5“, while making a lower low as wave „3“ was. Maybe the index needs one more up-down sequence to end his decline, HS has to turn his short term trend immediately.
If the index is heading toward lower lows, one objective target area is around 24994-25000 area, were wave „(5)“ =“(1)“! Another target range exists at a lower level, but this would make the bullish count invalid and turn the trend to the downside.
I will update the chart in the coming hours.
Have a great week...
ruebennase
Feel free to ask or comment.
Trading this analyze is at your own risk!