Hello Traders,
Hang Seng has closed an open gap from the trading of January 24- 25,2019! Yesterday`s trading range was inside this gap and HS closed the day positive at 27390.8/1.
After a nearly 50% decline of the advance from January to mid-April the correction could be done.
Vola for HS dropped to 18.75 (according to www.hsi.com.hk/eng/i...exes/volatilityindex) after it set a low on May 1!
Obviously a divergence. Selling pressure is waning, price is „rising“! Either the end of the correction or a countertrend move.
At the chart, an „Island Gap“ is to observe, and it will be interesting to see, how HS will manage this.
A gap to the upside is possible, while it would give the first hint, that the correction could be done.
For the short term, the low @ 27105 is important. Any rise above today`s high will open the door to 27424- 27505 and lead HS in the gap range from the trading of May 22-23 (27705-27505).
While the picture is not clear and the move from the low @ 27105 is not a clear „five-up“ I will hold my stand „neutral“ for Hang Seng as long as a clear impulsive pattern will develop!
Have a great week...
ruebennase
Feel free to ask or comment.
Trading this analyze is at your own risk!
Hang Seng has closed an open gap from the trading of January 24- 25,2019! Yesterday`s trading range was inside this gap and HS closed the day positive at 27390.8/1.
After a nearly 50% decline of the advance from January to mid-April the correction could be done.
Vola for HS dropped to 18.75 (according to www.hsi.com.hk/eng/i...exes/volatilityindex) after it set a low on May 1!
Obviously a divergence. Selling pressure is waning, price is „rising“! Either the end of the correction or a countertrend move.
At the chart, an „Island Gap“ is to observe, and it will be interesting to see, how HS will manage this.
A gap to the upside is possible, while it would give the first hint, that the correction could be done.
For the short term, the low @ 27105 is important. Any rise above today`s high will open the door to 27424- 27505 and lead HS in the gap range from the trading of May 22-23 (27705-27505).
While the picture is not clear and the move from the low @ 27105 is not a clear „five-up“ I will hold my stand „neutral“ for Hang Seng as long as a clear impulsive pattern will develop!
Have a great week...
ruebennase
Feel free to ask or comment.
Trading this analyze is at your own risk!