Hello Traders,
according to teletrader.com Hang Seng declined this week by 0.79%. It also achieved the level shy below the 24994 area, as I named as a target range at my last analyze. More interesting is the fact, that this low looks as a five down, the final low of the decline?
Let`s check the facts.
Today's low is just at the level of a wave „c“ of (ii)) from January 3, 2019! It is clearly a „three-down2 that looks like a corrective move.
We see a clear „divergence“ at price to RSI (not shown) and MACD (blue lines) chart, which is placed below the chart at the lower graph. Divergence often occurs at the end or near a trend reversal. So this one might be meaningful.
Vola did not exceed the latter high at the wave ((3)) low, that could be a first hint, that the correction is done.A/d-ratio closed today at 0.19, meaning 8 stocks were bought for everyone that was sold.
Using the Donchian-channel you will observe, that the trend hs changed, cause at the low @ 24889.9 prices touched the lower line of the channel and bounced strong. Even Stochastic has been at oversold levels and bounced to. So all these indicators suggest, that a low indeed ould be in place and Hang Seng will start a countertrend move next or didi it as of yesterday.
So, 24899.9 is the level to watch and it should be valid, to keep the bulls alive and change the trend to the upside.
Short-term it is could be possible that some hours of weakness are at Monday`s opening, cause some indicators are showing overbought conditions and price exceed the upper line of the Donchian channel, but this boundary could be stretched to the upside as of many hours and days if a new trend will start.
So stay tuned for the next move`s at Hang Seng. I wil update the chart asap.
Have a great weekend....
ruebennase
Feel free to ask or comment.
Trading this analyze is at your own risk!
according to teletrader.com Hang Seng declined this week by 0.79%. It also achieved the level shy below the 24994 area, as I named as a target range at my last analyze. More interesting is the fact, that this low looks as a five down, the final low of the decline?
Let`s check the facts.
Today's low is just at the level of a wave „c“ of (ii)) from January 3, 2019! It is clearly a „three-down2 that looks like a corrective move.
We see a clear „divergence“ at price to RSI (not shown) and MACD (blue lines) chart, which is placed below the chart at the lower graph. Divergence often occurs at the end or near a trend reversal. So this one might be meaningful.
Vola did not exceed the latter high at the wave ((3)) low, that could be a first hint, that the correction is done.A/d-ratio closed today at 0.19, meaning 8 stocks were bought for everyone that was sold.
Using the Donchian-channel you will observe, that the trend hs changed, cause at the low @ 24889.9 prices touched the lower line of the channel and bounced strong. Even Stochastic has been at oversold levels and bounced to. So all these indicators suggest, that a low indeed ould be in place and Hang Seng will start a countertrend move next or didi it as of yesterday.
So, 24899.9 is the level to watch and it should be valid, to keep the bulls alive and change the trend to the upside.
Short-term it is could be possible that some hours of weakness are at Monday`s opening, cause some indicators are showing overbought conditions and price exceed the upper line of the Donchian channel, but this boundary could be stretched to the upside as of many hours and days if a new trend will start.
So stay tuned for the next move`s at Hang Seng. I wil update the chart asap.
Have a great weekend....
ruebennase
Feel free to ask or comment.
Trading this analyze is at your own risk!