Fridays session brought a „gap-up“ at Hang Seng above the important resistance of 27259, the possible wave (b) high from Dec. 03!
The next trading hours will clear the picture if this „breakaway“ pattern is valid or will be a failure. So a pullback to the 27259 will be classified as a „goodby“ and if succesful a run to 28000 area is maybe next.
The Hang Seng composite and the HS composite Small Cap index support the view for the count while running in unison up, reaching important resistance levels in the next hours of coming week trading.
A second aspect for a ongoing rally is Vola of Hang Seng, which is still declining. It may can change trend direction at any time, of course, but a low which often walked "hand-hand“ with a reversal at marked often occurs around the level of 10-12! Right now we`re are trading at 17.77! So, there is still more room to rise for prices and decline for Vola!
But the most important is the pattern in terms we will monitor closely.
To the downside we have to monitor the level of 26860 where a open gap exist and a close below this will indicate a close of the gap and may a test of the rising , drawn at chart, which cross 25K zone in the coming days.
So the cards are at the table and we will discuss the pattern if they develop at the coming days!!
Have a great weekend.....
Feel free to ask or comment.
Trading this analyze is at your own risk!
Good Morning and thank u for the question. Feel free to ask and comment at anytime. I love questions and I`m hungry for them!:-)
I have update the chart and I hope it is now a bit easier to see the relationsship of the two waves talking from.
Notice both blue Fibonacci`s. First wave (i) is the orign, the second "i" is the copy of the first one and it is the level I was talking of. Hope that helps.