Hang Seng...Longest losing streak since 1997 endet today?
Hello Traders,
as an article on bloomberg.com website stated yesterday called out:
„Hong Kong Stocks Match Longest Losing Streak Since 1997“!
As you see at the graph below, the RSI is at oversold levels, while the 10-day MA has much room to decline.
Today's market action was a „reversal“ day, as Hang Seng opened @ 25472 and make a low @ 25397 at the second hour of trading. Thereafter a sharp reversal occurred and HS rallied to a close @ 25976.
HS also nearly closed the open gap that exists from yesterday's trading at 26086.
According to Investing.com today's volume (@2,985) was much above the 3-month volume of 1.762. The y-to-y performance is negative, -5.51%! This is not the behavior of a bull market!
Back to chart. At the daily chart, you will observe, that the important level is @ 24540 to keep the bullish count alive. If this low breaks, I have to adjust the count!
At the hourly chart it is possible to count the move from 30280 as an „a“-“b“-“c“-flat pattern with a „zigzag“ in a wave „b“ position.
One important support for this count comes from the social mood side in Hong Kong, as protesters force their protest to the government in a massive manner, by blocking traffic on the street, the underground and other infrastructures. So, when fear becomes a skyrocketing level, a bottom is more often than not near. Believe it or not, this behavior occurs more often than not as it did in the past.
If this count will work out, I favor the idea of a strong and sharp short term rally for Hong Kong stocks in the coming hours, with even also sharp and massive countertrend moves. While a lot of massive gaps are open, it could be possible, that HS will close most of them in the coming hours.
If today's low is valid in the coming hours and HS will advance we have some massive resistance levels @ 26767 and 27262, both are which 0.382 Fibonacci levels. Below the first level, I will take my stand neutral, as long as a cristall clear pattern develops and call out the end of the decline. A first „five-up“ will be a good hint that the trend has changed!
Have a great and fearless week...
ruebennase
Feel free to ask or comment.
Trading this analyze is at your own risk!
as an article on bloomberg.com website stated yesterday called out:
„Hong Kong Stocks Match Longest Losing Streak Since 1997“!
As you see at the graph below, the RSI is at oversold levels, while the 10-day MA has much room to decline.
Today's market action was a „reversal“ day, as Hang Seng opened @ 25472 and make a low @ 25397 at the second hour of trading. Thereafter a sharp reversal occurred and HS rallied to a close @ 25976.
HS also nearly closed the open gap that exists from yesterday's trading at 26086.
According to Investing.com today's volume (@2,985) was much above the 3-month volume of 1.762. The y-to-y performance is negative, -5.51%! This is not the behavior of a bull market!
Back to chart. At the daily chart, you will observe, that the important level is @ 24540 to keep the bullish count alive. If this low breaks, I have to adjust the count!
At the hourly chart it is possible to count the move from 30280 as an „a“-“b“-“c“-flat pattern with a „zigzag“ in a wave „b“ position.
One important support for this count comes from the social mood side in Hong Kong, as protesters force their protest to the government in a massive manner, by blocking traffic on the street, the underground and other infrastructures. So, when fear becomes a skyrocketing level, a bottom is more often than not near. Believe it or not, this behavior occurs more often than not as it did in the past.
If this count will work out, I favor the idea of a strong and sharp short term rally for Hong Kong stocks in the coming hours, with even also sharp and massive countertrend moves. While a lot of massive gaps are open, it could be possible, that HS will close most of them in the coming hours.
If today's low is valid in the coming hours and HS will advance we have some massive resistance levels @ 26767 and 27262, both are which 0.382 Fibonacci levels. Below the first level, I will take my stand neutral, as long as a cristall clear pattern develops and call out the end of the decline. A first „five-up“ will be a good hint that the trend has changed!
Have a great and fearless week...
ruebennase
Feel free to ask or comment.
Trading this analyze is at your own risk!