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Hello Traders,
Hang Seng and the Hang Seng short index hasn't made net progress in the latter week. This should imply a pause in a downtrend. If so, Hang Seng is on the verge to break to the wave ((e)) of „B“ low @ 23685, which was the low of the triangle pattern . The more bearish potential exists!
A break of the 24526 area (denoted with the red arrow) implies further weakness for HS and opens the door to the mentioned area before.
I have drawn a trend channel o show how HS is moving lower. One possibility is, that HS will decline in one more down-up-down sequence to complete the first waves of wave ((1)) and a pullback in a wave ((2)) and retrace a 0.5 – 0.618 Fibonacci of the decline. But there is still much time to go for this scenario.
A move above the high @ 26284 – 26347 would lower the count a minimum.
Have a great Sunday...
ruebennase
Feel free to ask or comment!
Trading this analysis is at your own risk!
Hang Seng and the Hang Seng short index hasn't made net progress in the latter week. This should imply a pause in a downtrend. If so, Hang Seng is on the verge to break to the wave ((e)) of „B“ low @ 23685, which was the low of the triangle pattern . The more bearish potential exists!
A break of the 24526 area (denoted with the red arrow) implies further weakness for HS and opens the door to the mentioned area before.
I have drawn a trend channel o show how HS is moving lower. One possibility is, that HS will decline in one more down-up-down sequence to complete the first waves of wave ((1)) and a pullback in a wave ((2)) and retrace a 0.5 – 0.618 Fibonacci of the decline. But there is still much time to go for this scenario.
A move above the high @ 26284 – 26347 would lower the count a minimum.
Have a great Sunday...
ruebennase
Feel free to ask or comment!
Trading this analysis is at your own risk!
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