Hang Seng...More evidence needed!Hello Traders,
Hang Seng achieved a 24262 level yesterday and shows weakness this day. It closed the latter two days below the 0.618 Fibonacci Extension of wave (a).
The drop to 22756 was a wave (b) and the move to the upside may need one more down-up sequence to complete wave (c) of ((iv))!
Overall the decline to fresh new lows is not done. Lower lows are still at forefront!
If yesterdays high was all of wave (c) of ((iv)), a significant decline is next to occur.
So, fresh new lows are what next to expect in the coming days and weeks. Any decline below the possible wave (b) low @ 22756 would greaten the odds, that the decline is underway.
While it is possible that HS will move above yesterdays high (@ 24262), a target range could be around the 24395 area, which represents the 0.618 Extension of wave (a)!
Any move to 25408 would alter the odds that a wave ((iv)) is underway, `cause it would be too large in terms of price.
In this case @ 21126, a wave ((i)) was done and a wave ((ii)) is underway. A target range for this idea is around the 25408 area, where wave ((ii)) would retrace a 0.618 Fibonacci of wave ((i))! Note the alt labels below the graph.
So, as before. Any drop below the wave (b) level @ 22756 would strengthen the odds, that a new wave of declining price with targets below the 21126 area is underway.
Have a great and safe week....
ruebennase
Feel free to ask or comment.
Trading this analysis is at your own risk!