The bulls were able to push the Hang Seng Index significantly higher on Friday, moving it further away from the yellow trading range between 17,424 and 15,571. However, we still expect the price to return to this area as part of the magenta wave (2) to make a lower low before the reversal occurs. That said, given the price action so far, we have to increase the probability of our alternative to 41%. In this case, the low of the magenta wave alt.(2) would already be in place and this scenario would come into play on a rise above the resistance at 18,898. However, it should be noted that our long-term expectation has already been fulfilled with the completion of the trading range. In both cases, there is considerable upside potential in the medium to long term. The price should clearly overcome the resistance at 20,899.
