Hello Traders,
Hang Seng has made a high @ 27967.90 on December 18. This was a little above the cited target range of 27900 points and it marks, to my view, the end of a wave „iii“!
The „down-up-down“ sequence since that high is to short in terms of time and price to correct the total advance that started on December 11 at the possible wave „ii“ low. So I guess, it is just a little portion of a longer-lasting correction to come.
As you know, by the rules of wave alternation, a wave „iv“ can morph into a triangle for example or a variation of a „flat-pattern“ because wave „ii“ was a flat!
In a first decline, HS traveled to 27776, which was in a price range of a wave „4“ of one lesser degree. The following „three-up“ was a wave „b“ countertrend and the wave „c“ low @ 27675 and it was equal to wave „a“! But wave „ii“ took 24 bars (hourly chart) to develop, and wave „iv“ which is to my view not done, took just 14 bars (hourly) for an a-b-c move. This is to short in terms of time. So I am looking at a minimum to the time around December 23 to finish a wave „iv“ correction, but for this HS has to decline lower, possible into the range of 27355, where the 0.382 Fibonacci of wave „iii“ is placed.
So, if the chart picture becomes clearer in the coming hours and days, I will update the chart.
Have a great week....
ruebennase
Feel free to ask or comment.
Trading this analyze is at your own risk!
Hang Seng has made a high @ 27967.90 on December 18. This was a little above the cited target range of 27900 points and it marks, to my view, the end of a wave „iii“!
The „down-up-down“ sequence since that high is to short in terms of time and price to correct the total advance that started on December 11 at the possible wave „ii“ low. So I guess, it is just a little portion of a longer-lasting correction to come.
As you know, by the rules of wave alternation, a wave „iv“ can morph into a triangle for example or a variation of a „flat-pattern“ because wave „ii“ was a flat!
In a first decline, HS traveled to 27776, which was in a price range of a wave „4“ of one lesser degree. The following „three-up“ was a wave „b“ countertrend and the wave „c“ low @ 27675 and it was equal to wave „a“! But wave „ii“ took 24 bars (hourly chart) to develop, and wave „iv“ which is to my view not done, took just 14 bars (hourly) for an a-b-c move. This is to short in terms of time. So I am looking at a minimum to the time around December 23 to finish a wave „iv“ correction, but for this HS has to decline lower, possible into the range of 27355, where the 0.382 Fibonacci of wave „iii“ is placed.
So, if the chart picture becomes clearer in the coming hours and days, I will update the chart.
Have a great week....
ruebennase
Feel free to ask or comment.
Trading this analyze is at your own risk!