Hello Traders,
today, HSE is closed because of the National holiday! So a good chance for an analysis of the market.
Hang Seng made a low on September 30 @ 25766 and advanced since to 26161.70.
This move is a small five on a lower timeframe (5min chart)! If so, it has to retrace a 0.618-0.786 Fibonacci of the advance which is @ 25786 – 25629.7 area. This should be all of the correction within a wave „2“ of any degree and after a strong advance is next to occur.
An alternate interpretation of this behavior is, that one lower low to at least the area of 25702 could be next, what will be a 0.786 retracement of higher degree and of the decline from 27366, the wave (1) high.
The latter one is a count with a high quality of possibility and is „eye-to-eye- with the first one.
But if HS is likely to run above 26387.9, a 0.382 retracement of the 27366 decline, before it makes a new low below the 25786, it would eliminate the latter count.
While more alternate counts exist, I like to see more evidence to one or the other potential count!
Have a great week....
ruebennase
Feel free to ask or comment.
Trading this analyze is at your own risk!
today, HSE is closed because of the National holiday! So a good chance for an analysis of the market.
Hang Seng made a low on September 30 @ 25766 and advanced since to 26161.70.
This move is a small five on a lower timeframe (5min chart)! If so, it has to retrace a 0.618-0.786 Fibonacci of the advance which is @ 25786 – 25629.7 area. This should be all of the correction within a wave „2“ of any degree and after a strong advance is next to occur.
An alternate interpretation of this behavior is, that one lower low to at least the area of 25702 could be next, what will be a 0.786 retracement of higher degree and of the decline from 27366, the wave (1) high.
The latter one is a count with a high quality of possibility and is „eye-to-eye- with the first one.
But if HS is likely to run above 26387.9, a 0.382 retracement of the 27366 decline, before it makes a new low below the 25786, it would eliminate the latter count.
While more alternate counts exist, I like to see more evidence to one or the other potential count!
Have a great week....
ruebennase
Feel free to ask or comment.
Trading this analyze is at your own risk!