Hello Traders,
Hang Seng made a low at 27598.10 on May 21 and start an advance which is yet not a clear „five-up“!
The structure of the move and the „right look“ too it, implies me, that a fresh new impuls is underway. But I need to see more development at the chart to judge this.
More often than not, at the start of a new impuls after a correction is done, a slight upmove is to observe, followed by a „gap-up“ that will be closed immediatly. Thereafter the bulls take control and push the index (stock..) to new highs within a strong move. This behavior is to observe for Hang Seng (check the 10 min chart below)!
If so, a bottom is built and the index is in at the early stages of a new impulsive move, may to new ATH`s!
At the past analyze I often highlighted the importance of the yellow rectangle, not because of the rectangle, just because of the pattern that could terminate at this levels. This area was a wave „4“ of lesser degree and some tics below the 0.382 Fibonacci of a correction, which is often a target range for a wave „4“ correction of any degree.
While it is possible that HS will drop to 27410 to complete the correction, the risk is not off the market.
Speculative traders jump in and „pray“ that the low is in place. More cautiously traders wait for a breakout above the level of 27828 (closing basis hourly) and buy a call with stopp loss level @ 27640.60!
That`s it for todays session.
Have a great week...
ruebennase
Feel free to ask or comment.
Trading this analyze is at your own risk!
Hang Seng made a low at 27598.10 on May 21 and start an advance which is yet not a clear „five-up“!
The structure of the move and the „right look“ too it, implies me, that a fresh new impuls is underway. But I need to see more development at the chart to judge this.
More often than not, at the start of a new impuls after a correction is done, a slight upmove is to observe, followed by a „gap-up“ that will be closed immediatly. Thereafter the bulls take control and push the index (stock..) to new highs within a strong move. This behavior is to observe for Hang Seng (check the 10 min chart below)!
If so, a bottom is built and the index is in at the early stages of a new impulsive move, may to new ATH`s!
At the past analyze I often highlighted the importance of the yellow rectangle, not because of the rectangle, just because of the pattern that could terminate at this levels. This area was a wave „4“ of lesser degree and some tics below the 0.382 Fibonacci of a correction, which is often a target range for a wave „4“ correction of any degree.
While it is possible that HS will drop to 27410 to complete the correction, the risk is not off the market.
Speculative traders jump in and „pray“ that the low is in place. More cautiously traders wait for a breakout above the level of 27828 (closing basis hourly) and buy a call with stopp loss level @ 27640.60!
That`s it for todays session.
Have a great week...
ruebennase
Feel free to ask or comment.
Trading this analyze is at your own risk!