Hello Traders,
Hang Seng declined too, today`s low @ 23560 could be a wave 3 of an impulsive move. If so, the next move is countertrend and develop as a „three-up“. A possible target range is at or around the 23900 level, were an open gap is left at chart and above to 24036 area, the 0.382 Fibonacci of the decline. On rule for Elliott wave is, that a wave 4 can never enter the territory of wave „1“! of any degree. So a „knock-out“ for the impulsive move is @ 24590.90. If this level will be touched, the odds are high that the impuslive move failed to develop.
The decline from 25847, the possible wave (ii) high looks more as a „three-down“, not an impulsive move yet, but the odds for a „flat-pattern“ would be high that one more up down sequence is needed to complete this structure. A target range for this scenario is the level at 23260, were waves c=a!
Have a great week...
ruebennase
Feel free to ask or comment!
Trading this analysis is at your own risk!
Hang Seng declined too, today`s low @ 23560 could be a wave 3 of an impulsive move. If so, the next move is countertrend and develop as a „three-up“. A possible target range is at or around the 23900 level, were an open gap is left at chart and above to 24036 area, the 0.382 Fibonacci of the decline. On rule for Elliott wave is, that a wave 4 can never enter the territory of wave „1“! of any degree. So a „knock-out“ for the impulsive move is @ 24590.90. If this level will be touched, the odds are high that the impuslive move failed to develop.
The decline from 25847, the possible wave (ii) high looks more as a „three-down“, not an impulsive move yet, but the odds for a „flat-pattern“ would be high that one more up down sequence is needed to complete this structure. A target range for this scenario is the level at 23260, were waves c=a!
Have a great week...
ruebennase
Feel free to ask or comment!
Trading this analysis is at your own risk!