Hang Seng...Sharp countertrend ahead or correction done?
Hello Traders,
Weekly:
Hang Seng closed the week with a massiv red stab @ 28550, dip at todays intraday low exactly to the level of a wave „iv“ zone (@ 28203.3) and the 0.382 Fibonacci of the late December 2018 advance and reversed since. This move down may complete wave „((Y)) of „((iv))“ or it is the first leg of a possible flat correction. A gap was left by the close of last week trading @ 30081.6 and this weeks opening @ 29342! It was the second gap at chart, and as I mentioned before, gaps occurs at the start, the middle and the end of a trend! Note this! So in fact of this, it is possible that Hang Seng has one more low to set. A sizeable targetrange is at 27797-27534. this range include a wave ((4))of lesser degree and is close to the 0.5 Fibonacci of the advance since late December 2018!
On a daily timeframe we observe, by just taking the open and close price, a“Harami“-formation, a bullish reversal pattern. This pattern give us a high opportunity that a reversal occurs next (or it is done by todays tradinglow) with a sharp countertrend ahead. The pattern that will develop in the next hours and days will give us more confidence in what will be next.
At the 3h chart it is a „bullish-engulfing“ to observe, indicating a full tradingday with up rising price behavior still. A second hint for a countertrend that is possible. For traders how will catch this market through the upside, please wait for a pullback, correcting the advance from 28203-28707, and act with a stop loss at todays low. While it is possible that one more up-down sequence is needed to complete the correction, keep the support zone at 27797-27534 in mind.
That`s it for the week.
Have a great weekend. Feel free to ask or comment!
Regards
ruebennase
Weekly:
Hang Seng closed the week with a massiv red stab @ 28550, dip at todays intraday low exactly to the level of a wave „iv“ zone (@ 28203.3) and the 0.382 Fibonacci of the late December 2018 advance and reversed since. This move down may complete wave „((Y)) of „((iv))“ or it is the first leg of a possible flat correction. A gap was left by the close of last week trading @ 30081.6 and this weeks opening @ 29342! It was the second gap at chart, and as I mentioned before, gaps occurs at the start, the middle and the end of a trend! Note this! So in fact of this, it is possible that Hang Seng has one more low to set. A sizeable targetrange is at 27797-27534. this range include a wave ((4))of lesser degree and is close to the 0.5 Fibonacci of the advance since late December 2018!
On a daily timeframe we observe, by just taking the open and close price, a“Harami“-formation, a bullish reversal pattern. This pattern give us a high opportunity that a reversal occurs next (or it is done by todays tradinglow) with a sharp countertrend ahead. The pattern that will develop in the next hours and days will give us more confidence in what will be next.
At the 3h chart it is a „bullish-engulfing“ to observe, indicating a full tradingday with up rising price behavior still. A second hint for a countertrend that is possible. For traders how will catch this market through the upside, please wait for a pullback, correcting the advance from 28203-28707, and act with a stop loss at todays low. While it is possible that one more up-down sequence is needed to complete the correction, keep the support zone at 27797-27534 in mind.
That`s it for the week.
Have a great weekend. Feel free to ask or comment!
Regards
ruebennase