Hello Traders,
Hang Seng complete a wave (5) @ 29149.50 on Jan 14. This move could be all of the advances started @ 25995 on December 04 or it is wave (iii) of „iii“.
I have drawn a „base-channel“ at the chart (blue) to show how wave „1“ and „2“ has progressed during it developing. The breakout of the channel with a gap-up on December 12 implies, that a wave „3“ has started!
The next trend channel to draw at the chart was the „acceleration-channel (black) to show the structure of the impulse move within wave „3“ and to determine the end of this wave. Note, that a break of the lower of the channel implies, that a wave „3“ has come to an end and a countertrend in a wave „4“ was underway!
This behavior was to observe with the break of exactly this boundary on January 3. The index declined in a „three-down“ to the upper boundary of the base-channel that often act as a support area/zone/level. It bounced than to the upside to complete the entire move or just a portion of the next move up. Please, not again the behavior as price popped above the upper boundary of one more channel which is another base-channel of higher degree. This channel could be important in the coming days and weeks.
If yesterday's high was all of the advances a „three-down“ or a variation thereof is next to look for. For now, the move is to short to call out which formation will be next, but a target range for a correction is at first hand at the wave „4“ level of one lower degree @28000 area were to, a 0.382 Fibonacci of the total advance is placed.
Any push above yesterday`s high could make today`s low @ 28619 a wave „4“ and a new high could be the final advance within a wave „5“.
Have a great week...
ruebennase
Feel free to ask or comment.
Trading this analysis is at your own risk!
Hang Seng complete a wave (5) @ 29149.50 on Jan 14. This move could be all of the advances started @ 25995 on December 04 or it is wave (iii) of „iii“.
I have drawn a „base-channel“ at the chart (blue) to show how wave „1“ and „2“ has progressed during it developing. The breakout of the channel with a gap-up on December 12 implies, that a wave „3“ has started!
The next trend channel to draw at the chart was the „acceleration-channel (black) to show the structure of the impulse move within wave „3“ and to determine the end of this wave. Note, that a break of the lower of the channel implies, that a wave „3“ has come to an end and a countertrend in a wave „4“ was underway!
This behavior was to observe with the break of exactly this boundary on January 3. The index declined in a „three-down“ to the upper boundary of the base-channel that often act as a support area/zone/level. It bounced than to the upside to complete the entire move or just a portion of the next move up. Please, not again the behavior as price popped above the upper boundary of one more channel which is another base-channel of higher degree. This channel could be important in the coming days and weeks.
If yesterday's high was all of the advances a „three-down“ or a variation thereof is next to look for. For now, the move is to short to call out which formation will be next, but a target range for a correction is at first hand at the wave „4“ level of one lower degree @28000 area were to, a 0.382 Fibonacci of the total advance is placed.
Any push above yesterday`s high could make today`s low @ 28619 a wave „4“ and a new high could be the final advance within a wave „5“.
Have a great week...
ruebennase
Feel free to ask or comment.
Trading this analysis is at your own risk!