Hello Traders,
Hang Seng declined 3.34% this week (according to teletrader.com) and gaped lower at Fridays session. HS touched serveral times the 265xx area, indicating strong resistance at this level and start declining.
This decline is done or close to do so, with one more down-sequence to the area at 25300.
In terms of time the decline from 26530.9 is to short relative to the advance from 24540.6. So it is possible, that the decline is just a good portion of the wave 2 correction, here a wave „a“ of 2!
Trading below 24967 (0.786 Fibonacci) on a daily close will make the bullish count less probable.
To my view there is a strong resistance zone at 26500-26700, which is a construct of the 0.618 Fibonacci of the decline from 28031-24540 and the rise from this low at 24540.6!
Next to follow is a wave „b“ up and after it complete a wave „c“ down to end this time of correction.
I like to see more evidence for this idea so the chart is open to different interpretation!
Have a great week....
ruebennase
Feel free to ask or comment.
Trading this analyze is at your own risk!
Hang Seng declined 3.34% this week (according to teletrader.com) and gaped lower at Fridays session. HS touched serveral times the 265xx area, indicating strong resistance at this level and start declining.
This decline is done or close to do so, with one more down-sequence to the area at 25300.
In terms of time the decline from 26530.9 is to short relative to the advance from 24540.6. So it is possible, that the decline is just a good portion of the wave 2 correction, here a wave „a“ of 2!
Trading below 24967 (0.786 Fibonacci) on a daily close will make the bullish count less probable.
To my view there is a strong resistance zone at 26500-26700, which is a construct of the 0.618 Fibonacci of the decline from 28031-24540 and the rise from this low at 24540.6!
Next to follow is a wave „b“ up and after it complete a wave „c“ down to end this time of correction.
I like to see more evidence for this idea so the chart is open to different interpretation!
Have a great week....
ruebennase
Feel free to ask or comment.
Trading this analyze is at your own risk!