Hello Traders,
Hang Seng gaped to the upside by the opening and made a high @ 26818.8 at the first trading hour. The index then declined for the remainder of the session to an intraday low @ 26295.5! The a/d-ratio was negative with 15 stocks advancing or neutral and 35 stocks declining today.
On the two graphs below you will observe the bullish and the bearish count on a daily basis! Let`s go!
Bullish count:
As before, the bullish variety is a series of „one`s and two`s“ to the upside. As you will notice, today`s intraday low @ 26925 is close to a validation level @ 26006 were it touches the low of a wave 2 of one higher degree. This would violate the rules and guidelines of Elliott waves.
As long as this low is in place, the count is still valid. Another view to this move is, that the high @ 29175 is a wave „b“ of a flat correction, (may a „running-flat“) which will terminate above the low @ 26006! Both interpretations are still valid and will keep the count alive.
The bearish view differs from the bullish in that, that the low @ 24540 was a wave“1“ and the countertrend after a „double zigzag“ correction that terminates at the area of a wave „4“ of lesser degree.
It is a bit „triggy“ to count the decline from the wave „2“ high the low in wave (i) as an impulse, but still possible. It looks more as a „three-down“ so this option is also valid too.
Overall I think the decline is not done and it should terminate above the 26006 levels to keep the bulls alive. Any decline below this level would bring the bears into forehand and open the door to lower prices in the coming days and weeks.
Have a great weekend...
ruebennase
Feel free to ask or comment.
Trading this analysis is at your own risk!
Hang Seng gaped to the upside by the opening and made a high @ 26818.8 at the first trading hour. The index then declined for the remainder of the session to an intraday low @ 26295.5! The a/d-ratio was negative with 15 stocks advancing or neutral and 35 stocks declining today.
On the two graphs below you will observe the bullish and the bearish count on a daily basis! Let`s go!
Bullish count:
As before, the bullish variety is a series of „one`s and two`s“ to the upside. As you will notice, today`s intraday low @ 26925 is close to a validation level @ 26006 were it touches the low of a wave 2 of one higher degree. This would violate the rules and guidelines of Elliott waves.
As long as this low is in place, the count is still valid. Another view to this move is, that the high @ 29175 is a wave „b“ of a flat correction, (may a „running-flat“) which will terminate above the low @ 26006! Both interpretations are still valid and will keep the count alive.
The bearish view differs from the bullish in that, that the low @ 24540 was a wave“1“ and the countertrend after a „double zigzag“ correction that terminates at the area of a wave „4“ of lesser degree.
It is a bit „triggy“ to count the decline from the wave „2“ high the low in wave (i) as an impulse, but still possible. It looks more as a „three-down“ so this option is also valid too.
Overall I think the decline is not done and it should terminate above the 26006 levels to keep the bulls alive. Any decline below this level would bring the bears into forehand and open the door to lower prices in the coming days and weeks.
Have a great weekend...
ruebennase
Feel free to ask or comment.
Trading this analysis is at your own risk!