Hello Traders,
Hang Seng made a high on September 13 @ 27366.5 and gaped lower for the next two sessions. Today's close was at the centerline of the base-channel @ 26790, it retraces shy above the 0.382 Fibonacci and it also met another upsloping trendline (red) that connects the wave ((1)) -wave ((2)) and wave ((3)) move.
A decline below the lower boundary of this channel implies a wave ((3)) is done and a wave ((4)) is underway that is part of the wave „iii“ advance that started at 24899.90 on August 15.
While a common target for a wave „4“ correction is the 0.382 Fibonacci of wave „2“ low to wave „3“ high, it could be all of the correction, but the time proportion looks not harmonic to my view and I guess it takes 1-2 days more at a minimum to complete this move. Note how perfect a decline to the 0.618 Fibonacci of the advance would fit into the overall pattern, meeting a lower boundary of the base-channel.
Such a „deep“ correction for a wave „4“ is allowed, the only rule to accept is that a wave „4“ does not move into the price territory of a wave „1“!
So a possible target zone for a wave „4“ correction is from 26653-26283-26212! A wide range but be focused on these levels.
A move below the 25498 levels, the low as of September 5, will rescind this forecast!
Have a great week...
ruebennase
Feel free to ask or comment.
Trading this analyze is at your own risk!
Hang Seng made a high on September 13 @ 27366.5 and gaped lower for the next two sessions. Today's close was at the centerline of the base-channel @ 26790, it retraces shy above the 0.382 Fibonacci and it also met another upsloping trendline (red) that connects the wave ((1)) -wave ((2)) and wave ((3)) move.
A decline below the lower boundary of this channel implies a wave ((3)) is done and a wave ((4)) is underway that is part of the wave „iii“ advance that started at 24899.90 on August 15.
While a common target for a wave „4“ correction is the 0.382 Fibonacci of wave „2“ low to wave „3“ high, it could be all of the correction, but the time proportion looks not harmonic to my view and I guess it takes 1-2 days more at a minimum to complete this move. Note how perfect a decline to the 0.618 Fibonacci of the advance would fit into the overall pattern, meeting a lower boundary of the base-channel.
Such a „deep“ correction for a wave „4“ is allowed, the only rule to accept is that a wave „4“ does not move into the price territory of a wave „1“!
So a possible target zone for a wave „4“ correction is from 26653-26283-26212! A wide range but be focused on these levels.
A move below the 25498 levels, the low as of September 5, will rescind this forecast!
Have a great week...
ruebennase
Feel free to ask or comment.
Trading this analyze is at your own risk!