Not the textbook example of a head and shoulders pattern on the Hang Seng, but nonetheless showing us a transition from higher lows (uptrend) to now lower highs (downtrend).
I wouldn't really want to trade equities given world equity markets are remaining poised for the Federal Reserve rate decision...but I do like the break, and if we can confirm the retest here...
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HSI has been labeled within a Sub-Millennium degree wave 4 (blue), which has been unfolding ever since the 2007-2008 Recession.
Structure - Expanding Flat Formation
Oct 2007 peaks and down until Oct 2008 bottoms - Grand Super-Cycle wave a (red)
$HSI is stuck within 29900 - 29500 area. the range become smaller and we have shifted down balance after the high of Apr'19 . Today, HSI bounced at 29600, this was showing that market still "hopping" for long term bullish. But I don't see any market conviction yet on the up side. 29900 still the bracket for couple of days.
we are in distribution pattern, but...
Looks like we choose the wrong market to get involved in.
"The sharper the move up the slower the downfall". Might be some truth to that...
Sure, "simple people" got extra excited and a huge adrenaline rush 1 year ago, but after 1 year, the chemicals left their bodies?
Are these "simple people like you and me that drive a tractor" so "simple and down to earth"...
Going to play this long. TP 1 is 27000 then pullback and to the top of this channel around 27600. If it breaks up it can go up to 29000. Stop under the lower low.
Daily View. Repeat the last move, if break up look for resistance at 29400. Good RR
HSI have been ranging from 29000 and 27800 for while. This make range play possible from buying at the bottom of the range or shorting at the top. On a weekly time frame, the trend is on the downside thus it might make more sense to short at the top range then to buy at the bottom. The decision to long is purely personal preference. If you are uncomfortable with...
The bearish AB=CD pattern is completing at 24432 level and the Supply Zone also locates at 24442-24489 levels.
Meanwhile the RSI has been overbought.
So it is good to sell at 24440-24490 levels when the price action gives signals in the PRZ.
TP2:24000 and further more
China had a monstrous collapse in 2015, after that rally it is now showing some short term weakness. The problems they face are currency, slowing growth, and house prices.
I believe that house price may effect stock prices but it shouldn't be something that effects the whole market because the problem is evident, when we know about the problem we protect against...
The market has soared for a long time and now the price is pulling back the 0.618RET.
Meanwhile the previous structure also works at this zone.
So it is good to buy long at 21300-21700 when price action gives the signal.
TP2:25500 and further more
1st weekly target already hit, not very safe to enter now. Now is the time to wait patiently for RSI to retrace to 50 level before deciding on the next step. It is 21bars since the last MACD cross, if the retrace is deep, it might go down to meet the MACD (green circle); which I doubt so. Any thing beyond 23k is already pushing the envelope. For this chart, the...
I read an article published on zerohedge named something like "g-20-meeting-was-big-disappointment-what-happens-next". I am not sure why the article now can not be found .
as someone named Brent Donnelly said that the market expect something from the G20 , which result the lift of the stock index on last Thursday and Friday. now the meeting disappoints the market...