Hello Traders,
Hang Seng failed to exceed the upper boundary of the trendchannel and declined sharp after. It has left a „bearish-engulfing“ at chart, a sell signal on a daily basis. While closing below the 0.382 Fibonacci of the advance from Jan.-April, the odds do increase, that the targets for the next move have to be checked at the downside.
I have drawn a Elliott based trendchannel at chart, connecting nearly perfect the highs of wave „(i)-(iii)-(v) at the upper side and the wave „(ii)-(iv)) at the lower boundary. HS is close to touch the lower line (it may could happen at Mondays session) and will test the 0.5 Fibonacci of the advance @ 27410!
If so to come, this correction will stay in line with the Elliottwave model, arguing that wave „2“ of any degree often retrace steep and deep into the lower levels of wave „1“. This behavior will lead many traders to think, that the bear market is back.
The opposite is true. The bulls will set the blocks for a new advance, as it is the case for Hang Seng if this count is working out well.
Shortterm there is more trouble ahead.
While more bearish potencial below the 0.382 and the 0.5 Fibonacci exist, I will wait for clear odds, that a bottom has built.
We will discuss any develpment at this pages.
Have a great weekend....
ruebennase
Feel free to ask or comment.
Trading this analyze is at your own risk!
Hang Seng failed to exceed the upper boundary of the trendchannel and declined sharp after. It has left a „bearish-engulfing“ at chart, a sell signal on a daily basis. While closing below the 0.382 Fibonacci of the advance from Jan.-April, the odds do increase, that the targets for the next move have to be checked at the downside.
I have drawn a Elliott based trendchannel at chart, connecting nearly perfect the highs of wave „(i)-(iii)-(v) at the upper side and the wave „(ii)-(iv)) at the lower boundary. HS is close to touch the lower line (it may could happen at Mondays session) and will test the 0.5 Fibonacci of the advance @ 27410!
If so to come, this correction will stay in line with the Elliottwave model, arguing that wave „2“ of any degree often retrace steep and deep into the lower levels of wave „1“. This behavior will lead many traders to think, that the bear market is back.
The opposite is true. The bulls will set the blocks for a new advance, as it is the case for Hang Seng if this count is working out well.
Shortterm there is more trouble ahead.
While more bearish potencial below the 0.382 and the 0.5 Fibonacci exist, I will wait for clear odds, that a bottom has built.
We will discuss any develpment at this pages.
Have a great weekend....
ruebennase
Feel free to ask or comment.
Trading this analyze is at your own risk!