Hang Seng index has been correcting since late January along with other stock markets. I consider the first drop to 29000 levels as wave A, the later triangle pattern as wave B and the latest break of the triangle as Wave C of the Eliott wave ABC pattern. IF this wave count is correct, then Hang Seng could drop to 24000 levels in Wave C (if wave C = 1.62 times Wave A). Interestingly, this level also coincides with 61.8% retracement level for the bullish wave started from 18240 in Feb 2016.
Note: Hang Seng is unlikely to go down that much on its own. Does it suggest that we are likely to see a similar downturn in other markets such as Dow Jones? Let's wait and watch!
Note: Hang Seng is unlikely to go down that much on its own. Does it suggest that we are likely to see a similar downturn in other markets such as Dow Jones? Let's wait and watch!
הערה:
Last leg to the downside appears to have started...
הערה:
PS: This analysis is just for educational purposes and is not a recommendation to buy or sell. Please do your own research and trade at your own risk.
After the completion of five waves, we will see if it moves back up or starts another five waves to the downside.