Hello Traders,
Hang Seng dropped at todays session to 29051.90 (according to tradingview.com). This range is within the span of an a-b-c pattern and was the 1.618 Fibonacci extension of wave a.
At 29486 a wave (v) may endet or a larger correctiv pattern is to develop.
On a daily basis, Hang Seng is no longer a „long-call“ and the push that started at January has likely come to an end.
If so let`s check the corrections target areas.
First to view is on a daily chart that the move from 28179 is the one to retreace. A common target zone is around 28995-28692. Both are the .382 and the .628 Fibonacci of the latest advance. Note that at 28692 an open gap exist from the trading on March 11-12, 2019. This open gap might be filled on the way down.
For the shortterm (hourly chart) it is likely that Hang Seng has endet (or is close to do so) the decline and a countertrend is next to develop, may lasting the next hours by tommorows trading session.
Depending on the end of the decline (or some points below todays low) a common target area for a countertrend is the zone of 29180-29220 range, which will be at or near a .382 Fibonacci of the decline.
If the decline is not done for now, a common area for the end could be around 29034-29024.
Be patient by trading Hang Seng for a countertrend. The odds do favor the opportunity, that a longer lasting correction could have start as of the last days.
One laternate view can be, that Hang Seng has endet a wave (iii) of higher degree at 29481 and is now correcting within a wave (iv) and a push to new highs is next to occur.
We will discuss this if necesarry at this pages.
Have a great week...
ruebennase
Hang Seng dropped at todays session to 29051.90 (according to tradingview.com). This range is within the span of an a-b-c pattern and was the 1.618 Fibonacci extension of wave a.
At 29486 a wave (v) may endet or a larger correctiv pattern is to develop.
On a daily basis, Hang Seng is no longer a „long-call“ and the push that started at January has likely come to an end.
If so let`s check the corrections target areas.
First to view is on a daily chart that the move from 28179 is the one to retreace. A common target zone is around 28995-28692. Both are the .382 and the .628 Fibonacci of the latest advance. Note that at 28692 an open gap exist from the trading on March 11-12, 2019. This open gap might be filled on the way down.
For the shortterm (hourly chart) it is likely that Hang Seng has endet (or is close to do so) the decline and a countertrend is next to develop, may lasting the next hours by tommorows trading session.
Depending on the end of the decline (or some points below todays low) a common target area for a countertrend is the zone of 29180-29220 range, which will be at or near a .382 Fibonacci of the decline.
If the decline is not done for now, a common area for the end could be around 29034-29024.
Be patient by trading Hang Seng for a countertrend. The odds do favor the opportunity, that a longer lasting correction could have start as of the last days.
One laternate view can be, that Hang Seng has endet a wave (iii) of higher degree at 29481 and is now correcting within a wave (iv) and a push to new highs is next to occur.
We will discuss this if necesarry at this pages.
Have a great week...
ruebennase