Hang Seng....A thrust off a triangle?Hello Traders,
Hang Seng has risen to 25373 this week and it`s up ~ 4k points from it`s low @ 21139 on the week of March 9. Since the low HS has just retrace 0.35 of the decline from the ATH @ 33484. This is weak! So far, the move since that low is just a „three-up“ and it is countertrend. If waves C equals A @ 26478, what is the retracement of 0.43 of the countertrend, it could be a good reversal area to assume the downtrend since January 2018!
The structure from the ATH to 21139 shows overlapping waves and indicates a correction to a high degree. It could be waves (A)- triangle (B)-(C) or just a flat (W)-(X)-(Y) or a variation thereof.
Very interesting is a quick view of the Hang Seng Short index (Tick: HSISI) below the HS graph.
This index topped in September 2011 and is in a downtrend since.
Every low or high this index made, coincides with a low or a high for HS, but in an inverted view!
So, if this observation is right, HS has room to advance in the coming days and weeks ahead, because the structure of the Short index looks not to be done to the downside! A break of the level @ 4748 for HS short index would imply an ongoing advance for HS! As before. a mentioned area is around the 26478 zones (waves C=A)!
At the 3h chart for HS you can observe one alt count. I have counted a rare „expanding triangle“ for the index and if this count works out, the break above the wave (d) high @ 25303 implies a „thrust“ in a wave ((c)) underway. A target range for this scenario is @ 26277, where it would close an open gap, left by the trading on March 6-9 (c=26146-o=25134)! This would be shy below the 26478 area I have mentioned before!
For the very short term view, I expect HS to rise to still higher levels in the coming 1-2 days.
Stay tuned for the next update for Hang Seng.
Have a great Sunday and a great week...
ruebennase
Feel free to ask or comment!
Trading this analysis is at your own risk!