Hello Traders,
Hang Seng gapped this session to the downside, leaving a massive open-gap @ 27949 – 27101 and crossed the middle line of the corrective trend channel. So this channel implies a corrective „character“ and opens the door to lower prices in the coming sessions.
The high on January 20 @ 27174.90 possibly was a wave „X“ as the move broke out of the upper line of the trend channel but failed to exceed higher highs at the following hours. Instead, it declined back into the channel and made lower lows, leaving an open gap and touched the middle line of the channel 27706 on Jan. 23.
The next day Hang Seng gapped lower again and closed the session at 27160. This is near the target range I called at my latter analysis. The next target level is at ~ 26750 area, the up-sloping trendline, depending on when and if it will achieve.
If so to come we have to check the pattern for more information. For now, it is clear to say, that more bearish potential exists!
Today`s gap-down could be an „acceleration-gap“, which often occurs at a wave „3 of 3“ in an impulsive pattern.
Only a push above 27988.60 will clear the chart for higher price to come (hourly close at minimum).
Till then we observe the pattern very closely and judge in the coming hours what`s next to expect.
Have a great week...
ruebennase
Feel free to ask or comment.
Trading this analysis is at your own risk!
Hang Seng gapped this session to the downside, leaving a massive open-gap @ 27949 – 27101 and crossed the middle line of the corrective trend channel. So this channel implies a corrective „character“ and opens the door to lower prices in the coming sessions.
The high on January 20 @ 27174.90 possibly was a wave „X“ as the move broke out of the upper line of the trend channel but failed to exceed higher highs at the following hours. Instead, it declined back into the channel and made lower lows, leaving an open gap and touched the middle line of the channel 27706 on Jan. 23.
The next day Hang Seng gapped lower again and closed the session at 27160. This is near the target range I called at my latter analysis. The next target level is at ~ 26750 area, the up-sloping trendline, depending on when and if it will achieve.
If so to come we have to check the pattern for more information. For now, it is clear to say, that more bearish potential exists!
Today`s gap-down could be an „acceleration-gap“, which often occurs at a wave „3 of 3“ in an impulsive pattern.
Only a push above 27988.60 will clear the chart for higher price to come (hourly close at minimum).
Till then we observe the pattern very closely and judge in the coming hours what`s next to expect.
Have a great week...
ruebennase
Feel free to ask or comment.
Trading this analysis is at your own risk!