Hello Traders,
Hang Seng made this week low on Tuesday @ 25397.35 and jumped to a weekly close @ 25939.30! This was a weekly loss of 0.69% (according to teletrader.com) and left a „bearish Engulfing“ at chart, a bearish reversal pattern, indicating more weakness to come in the next days and maybe 1-2 weeks.
If so to come, HS will attack the important low @ 24540 from October 18. If this low is going to break to the downside the upward potential for HS is done for many days and weeks and we might run into a „crash“ scenario!
For the short term, we have some different interpretations for the chart picture. Here are two of them.
The first and bullish is, that the level of 30280 is a wave (i) of a wave „3“ and the decline since a wave „c“ of (ii). Note, that the low @ 25397 is equal to wave „a“! The result of this valid interpretation is rising prices in the coming weeks ahead and possible a new ATH well above the 33484 levels.
The second and the bearish one is that the high 26317is wave „iv“ level and price will decline in the coming week.
It is possible that HS needs one more down-up sequence to complete this move, `cause the push from 25397 is well below the 0.382 retracement which is often a common target for a wave „4“ countertrend. It is not a break of rules and guidelines due to the Elliott wave model and Theory but it would imply extreme weakness and underperformance for HS in the coming days and weeks ahead.
Note at the hourly chart, that a lot of gaps have occurred during the past hours and days. Gaps did not occur randomly, they occur at the start, in the middle or at the end of an advance or a decline. So the last gap was closed on August 8. A close of the other open gaps could be a first hint that the low is in place.
If HS is likely to extend its countertrend rally, there remains one open target that could achieve next @ 26695, which is the 0.382 Fibonacci level of the latter decline.
So, the next hours and 1-2 days will be important for the coming performance of HS.
Stay tuned, as this chart will be updated in the coming hours and days ahead.
Have a great weekend...
Feel free to ask or comment.
Trading this analyze is at your own risk!
Hang Seng made this week low on Tuesday @ 25397.35 and jumped to a weekly close @ 25939.30! This was a weekly loss of 0.69% (according to teletrader.com) and left a „bearish Engulfing“ at chart, a bearish reversal pattern, indicating more weakness to come in the next days and maybe 1-2 weeks.
If so to come, HS will attack the important low @ 24540 from October 18. If this low is going to break to the downside the upward potential for HS is done for many days and weeks and we might run into a „crash“ scenario!
For the short term, we have some different interpretations for the chart picture. Here are two of them.
The first and bullish is, that the level of 30280 is a wave (i) of a wave „3“ and the decline since a wave „c“ of (ii). Note, that the low @ 25397 is equal to wave „a“! The result of this valid interpretation is rising prices in the coming weeks ahead and possible a new ATH well above the 33484 levels.
The second and the bearish one is that the high 26317is wave „iv“ level and price will decline in the coming week.
It is possible that HS needs one more down-up sequence to complete this move, `cause the push from 25397 is well below the 0.382 retracement which is often a common target for a wave „4“ countertrend. It is not a break of rules and guidelines due to the Elliott wave model and Theory but it would imply extreme weakness and underperformance for HS in the coming days and weeks ahead.
Note at the hourly chart, that a lot of gaps have occurred during the past hours and days. Gaps did not occur randomly, they occur at the start, in the middle or at the end of an advance or a decline. So the last gap was closed on August 8. A close of the other open gaps could be a first hint that the low is in place.
If HS is likely to extend its countertrend rally, there remains one open target that could achieve next @ 26695, which is the 0.382 Fibonacci level of the latter decline.
So, the next hours and 1-2 days will be important for the coming performance of HS.
Stay tuned, as this chart will be updated in the coming hours and days ahead.
Have a great weekend...
Feel free to ask or comment.
Trading this analyze is at your own risk!