HSI is possible to make a double top or new time high again
Hang Seng Index has rally back above 292000, the low of Previous Wave one low. according to the Elliott wave rule: W4 should not enter W1. it's happening right now. so we could consider the previous one is not a impulse leg for downside movement. if it's not a downside one, we should be looking for a wave 5 rally then. a wave 5 rally should be looking for test the 2017 previous high. 33484 or even a new high. of course we might also face a failing wave 5 which is just below 33484.
Last Friday we have a high volume day with 120b, with 1/4/2019 have a gap open above 29200, these are all bullish technical signal. Fundamentally, Bloomberg said that yuan-denominated government bonds and policy bank securities would be added to the US$54 trillion Bloomberg Barclays Global Aggregate Index from April and would be phased in over a 20-month period. When fully implemented, local currency Chinese bonds would be the fourth largest currency component in the index behind the US dollar, the euro and the Japanese yen, Bloomberg said.
also the China and US trade talk give a positive atmosphere, in Beijing talk, it's rumor that a official welcome dinner is replace by a working dinner. so both are working very hard on details of the deal. if the China America trade deal hit the market, it will fuel the rally too.
Last Friday we have a high volume day with 120b, with 1/4/2019 have a gap open above 29200, these are all bullish technical signal. Fundamentally, Bloomberg said that yuan-denominated government bonds and policy bank securities would be added to the US$54 trillion Bloomberg Barclays Global Aggregate Index from April and would be phased in over a 20-month period. When fully implemented, local currency Chinese bonds would be the fourth largest currency component in the index behind the US dollar, the euro and the Japanese yen, Bloomberg said.
also the China and US trade talk give a positive atmosphere, in Beijing talk, it's rumor that a official welcome dinner is replace by a working dinner. so both are working very hard on details of the deal. if the China America trade deal hit the market, it will fuel the rally too.