Hello Traders,
Hang Seng has not made any net progress to jump to new highs, instead it is trading within a range between 29014 and 28680.
The shortterm weakness of HS is so far a clear „three“ down and touched the uprising trendline (blue) of the trendchannel. As long as HS is trading above 28681 the focus is to the upside and it could be possible that price will exceed the high at 29014, indicating that this advance is not over short term.
A break of the trendchannel and a decline to ~28571 with a solid volume will open the door to 28357 (blue dotted trendline) and indicate a correction of higher degree. Keep in mind, that a corrective move often touch the level of a wave 4 of lesser degree which is around 27850 zone.
Observing the shortselling ratio for hang Seng, you will notice that the ratio is raising shortterm to a level of 38.463% (according to www.aastock.com) and this behavior often indicate an ongoing advance.
Observing HS Small Cap index, HS Internet&Information Index and HS Fiancial Index (on a daily basis) they all trade below there respective highs as of Feb 25/26. As long as this is the case the focus is sideways.
Note that as pessimism (for an ongoing advance) at traders stays at high levels a correction has seldom start at those levels.
HS Future closed the week with a red candle and is attacking the lower boundary line of the trendchannel (blue) so far.
Sometimes it is difficult to recognize a clear „five-up“ but as before...the trend for Hang Seng Index is up and may a „three of a three“ is underway which will bring HSI to new ATH`S!
Have great weekend...
ruebennase
Feel free to ask or comment.
Trading this analyze is at your own risk!
Hang Seng has not made any net progress to jump to new highs, instead it is trading within a range between 29014 and 28680.
The shortterm weakness of HS is so far a clear „three“ down and touched the uprising trendline (blue) of the trendchannel. As long as HS is trading above 28681 the focus is to the upside and it could be possible that price will exceed the high at 29014, indicating that this advance is not over short term.
A break of the trendchannel and a decline to ~28571 with a solid volume will open the door to 28357 (blue dotted trendline) and indicate a correction of higher degree. Keep in mind, that a corrective move often touch the level of a wave 4 of lesser degree which is around 27850 zone.
Observing the shortselling ratio for hang Seng, you will notice that the ratio is raising shortterm to a level of 38.463% (according to www.aastock.com) and this behavior often indicate an ongoing advance.
Observing HS Small Cap index, HS Internet&Information Index and HS Fiancial Index (on a daily basis) they all trade below there respective highs as of Feb 25/26. As long as this is the case the focus is sideways.
Note that as pessimism (for an ongoing advance) at traders stays at high levels a correction has seldom start at those levels.
HS Future closed the week with a red candle and is attacking the lower boundary line of the trendchannel (blue) so far.
Sometimes it is difficult to recognize a clear „five-up“ but as before...the trend for Hang Seng Index is up and may a „three of a three“ is underway which will bring HSI to new ATH`S!
Have great weekend...
ruebennase
Feel free to ask or comment.
Trading this analyze is at your own risk!