Hello Traders,
Hang Seng has broke out of the flag and declined to 26861 on July 9! This decline was a 0.618 Fibonacci of wave a/w! In rare cases, this could be all off the correction in a wave c/w! But as long as HS is trading below 28833 level I favor the odds for a wave c or y which is not done to the downside.
A break of the July 9 low would open the door to 25939 level. Here, waves c=a (i.e. y=w) and at this level is the 0.618 Fibo of the advance from 23124 to 31183! So I guess a strong Fibo-cluster!
But more bearish potential exist!
A break of the 28833 area would signal the correction should be done, and HS is on the way to new highs.
Have a great Sunday.....
Ruebennase
Feel free to aks or comment!
Trading this analysis is at your own risk!
Hang Seng has broke out of the flag and declined to 26861 on July 9! This decline was a 0.618 Fibonacci of wave a/w! In rare cases, this could be all off the correction in a wave c/w! But as long as HS is trading below 28833 level I favor the odds for a wave c or y which is not done to the downside.
A break of the July 9 low would open the door to 25939 level. Here, waves c=a (i.e. y=w) and at this level is the 0.618 Fibo of the advance from 23124 to 31183! So I guess a strong Fibo-cluster!
But more bearish potential exist!
A break of the 28833 area would signal the correction should be done, and HS is on the way to new highs.
Have a great Sunday.....
Ruebennase
Feel free to aks or comment!
Trading this analysis is at your own risk!