Hang Seng...Future lead the way!
today I`d like to show you Hang Seng Future, because of the price development suring after session trading causing by US markets.
Hang Seng (normal trading hours) closed the day with modestly losses @ 29113. The Future had the rest of the day to go...and he did.
By opening the US markets a sharp and strong decline occurs at markets and HS declined to an intraday low @ 28629, close a bit lower the week at 28671.
The Future dropped below the low of March 22,2019. This decline is in terms of price not as long (or longer) as the decline from29255-28016, which I have label an a-b-c pattern.While we have overlapping wave-structure (mark with the red line) it could not be a double 1-2 pattern. So one possibility is, that at 29630 a wave (( iii ) finished and a complexe pattern is next to develop.
While the correction after the wave ((i)) high was an „expanding-flat“ pattern I think that the next correction at the same degree will morph eithter into a more complex one (such as a contracting triangle) or it will be a sharp and steep decline, causing by the rules of alternation at the wave principle.
For now it is too early to judge, but the coming week may give an answer which one will develop!
The cash marekt at Mondays opening will may recreate the decline of the future market. The indicators are showing oversold conditions, indicating more declines to come. May it occur short after the opening bell.
From a trading perspective I would be standing off the markets til the pattern becomes more clear.
More potencial exist and for short-term the high at 29630 is the level to be break for new ATH`s, which I think sooner or later will occur!
Have a great weekend....
Feel free to ask or comment.
Trading this analyze is at your own risk!