Hello Traders,
Hang Seng is moving sideways as of the past days and implicates that the decline is not over and done.
Price is now moving between the 0.618-0.786 Fibonacci (25847-25430) of the advance from 24899-27366. A decline to the lower Fibonacci is possible and will not rescind this bullish forecast. A steep and deep decline often occurs within a wave „2“ and it is based on traders' Psychologie, `cause they think the bear market is back!
More often than not, the opposite is the truth!
An alternate count is, to switch to an overall bearish outlook and count a wave „2“ of higher degree to be done @ 27363 and a wave „3“ is underway that will bring new lows in the coming days.
A solid close of the 27430 area on an hourly and daily closing basis with increasing volume will be a first hint that this is developing!
Stoch (13,5,8) is at “oversold“ area and MACD has much room to decline.
But as before. With an increasingly negative social mood in the streets of Hong Kong, an important bottom could be just around the corner.
The low (24899) from August 15 is the level to watch!
Have a great week...
ruebennase
Feel free to ask or comment.
Trading this analyze is at your own risk!
Hang Seng is moving sideways as of the past days and implicates that the decline is not over and done.
Price is now moving between the 0.618-0.786 Fibonacci (25847-25430) of the advance from 24899-27366. A decline to the lower Fibonacci is possible and will not rescind this bullish forecast. A steep and deep decline often occurs within a wave „2“ and it is based on traders' Psychologie, `cause they think the bear market is back!
More often than not, the opposite is the truth!
An alternate count is, to switch to an overall bearish outlook and count a wave „2“ of higher degree to be done @ 27363 and a wave „3“ is underway that will bring new lows in the coming days.
A solid close of the 27430 area on an hourly and daily closing basis with increasing volume will be a first hint that this is developing!
Stoch (13,5,8) is at “oversold“ area and MACD has much room to decline.
But as before. With an increasingly negative social mood in the streets of Hong Kong, an important bottom could be just around the corner.
The low (24899) from August 15 is the level to watch!
Have a great week...
ruebennase
Feel free to ask or comment.
Trading this analyze is at your own risk!