Hello Traders,
as per my last analyse Hang Seng dropped to the zone of the 0.618 Fibonacci (@ 26950.5) of the advance from early January `19 to April `19! After it rallied to 27857.9 and declined in a, probably, countertrend. The decline was really deep and retrace a ~ 0.88 Fibonacci of the advance. (This retracement is the minimum expectation for a „flat-pattern“ to develop, so this is one opportunity for a count).
The advance from today`s low @ 26825 is not a clear“five-up“, it still need more subdivision to become one but as long as the low is intact, the odds do increase for higher price still!
At the daily chart, you can observe a „hammer-candle“ which often occurs after a decline and signal a change of trend, probably!
Any decline below 26995.6 will decrease the advance and open the door to lower prices still. Notice the open gap, left by trading from June 4 – June 5; this gap is closed at 26718.7 (closing price).
The bullish variation of the count implies a starting impulse to new highs above the 27857.9.
A typical target zone for such a move is the wave „4“ level, here at 28440 zone.
Hang Seng will show more or less clear patterns in the coming hours and we will judge if they become more clear develop.
Have a great day
ruebennase
as per my last analyse Hang Seng dropped to the zone of the 0.618 Fibonacci (@ 26950.5) of the advance from early January `19 to April `19! After it rallied to 27857.9 and declined in a, probably, countertrend. The decline was really deep and retrace a ~ 0.88 Fibonacci of the advance. (This retracement is the minimum expectation for a „flat-pattern“ to develop, so this is one opportunity for a count).
The advance from today`s low @ 26825 is not a clear“five-up“, it still need more subdivision to become one but as long as the low is intact, the odds do increase for higher price still!
At the daily chart, you can observe a „hammer-candle“ which often occurs after a decline and signal a change of trend, probably!
Any decline below 26995.6 will decrease the advance and open the door to lower prices still. Notice the open gap, left by trading from June 4 – June 5; this gap is closed at 26718.7 (closing price).
The bullish variation of the count implies a starting impulse to new highs above the 27857.9.
A typical target zone for such a move is the wave „4“ level, here at 28440 zone.
Hang Seng will show more or less clear patterns in the coming hours and we will judge if they become more clear develop.
Have a great day
ruebennase