Hello Traders,
Hang Seng dropped down the latter week to 23418 (Future low) and 24483 Cash market.
Closing price @ 23831. As long as the top of wave C of (4) is valid (@ 24666.6) the outlook remains bearish to new lows for Hang Seng.
As per my alternate count, it could be possible, that a flat-pattern is underway, which is not done to the downside, too. So, both counts favor new lows in the coming days and weeks ahead.
With still more possible wave counts do exist, one more is that at the low @ 21138, a wave 1 of Minor degree was done, and the developing countertrend was a wave 2, which is underway. The retracement of this wave was shy above the 0.382 of the decline from 29174-21138, but more importantly, it clearly shows the pattern of a „three-up“!
So, any drop below the 22756 area would greaten the odds, that the countertrend was done and HS is on the way to fresh lows.
In fact, a wave 2 of any degree only has the rule, not peaking above the start of wave 1. So, in this case, there is much room to the upside, if HS will exceed above 24666.6.
I will update the chart if a clear wave pattern occurs.
Have a great and safe weekend...
ruebennase
Feel free to ask or comment.
Trading this analysis is at your own risk!
#Stay home
#Stay healthy
Hang Seng dropped down the latter week to 23418 (Future low) and 24483 Cash market.
Closing price @ 23831. As long as the top of wave C of (4) is valid (@ 24666.6) the outlook remains bearish to new lows for Hang Seng.
As per my alternate count, it could be possible, that a flat-pattern is underway, which is not done to the downside, too. So, both counts favor new lows in the coming days and weeks ahead.
With still more possible wave counts do exist, one more is that at the low @ 21138, a wave 1 of Minor degree was done, and the developing countertrend was a wave 2, which is underway. The retracement of this wave was shy above the 0.382 of the decline from 29174-21138, but more importantly, it clearly shows the pattern of a „three-up“!
So, any drop below the 22756 area would greaten the odds, that the countertrend was done and HS is on the way to fresh lows.
In fact, a wave 2 of any degree only has the rule, not peaking above the start of wave 1. So, in this case, there is much room to the upside, if HS will exceed above 24666.6.
I will update the chart if a clear wave pattern occurs.
Have a great and safe weekend...
ruebennase
Feel free to ask or comment.
Trading this analysis is at your own risk!
#Stay home
#Stay healthy