HLAL : The bulls are weakening ( Medium term - Wave analysis)

This time around we will look at HLAL, a syariah compliant ETF listed on NASDAQ that provides muslims investors exposure to the US stock market. We ourselves had a small portion of our portfolio invested in HLAL as a long term investment though we would not be biased in presenting our analysis here. At the moment, our wave count suggests that the move in wave i earlier last year following the global market meltdown appears to be extended. Based on the wave principle, more often that not only 1 of the 3 impulsive waves is extended and on a very rare occasion, 2 of them. When doing a ratio analysis (using fibonacci ratios) to project targets, in cases where wave 1 is extended we will often find that the length of wave 3 through wave 5 is equal to 61.8% of the length of wave 1. This might support our wave count when we label the highest high in May 2021 as the 5th wave which coincides with 0.618 fib extension from the length of wave 1. Moreover, the negative divergence in most oscillators (we are using RSI in this case) for the past few months suggests the uptrend is weakening and such is also one of the characteristics often found at the end of 5th waves. HLAL is currently resting on a tentative uptrendline as drawn of the chart and could serve as a pivotal point in determining the direction of the ETF for the next few weeks/months. A breakdown below the uptrendline might trigger a bearish reversal at least in the short to medium term in our view. Next support seen is at 34.00 followed by 32.80 level. With the recent bearish sentiment on the broader global market indices however, we are "speculating" that a correction in HLAL might begin soon. One might want to raise a some good amount of cash if such thing is going to happen. Let's see how things will play out