A market capitalization-weighted index of 40 of the largest companies that trade on the Hong Kong Exchange. The Hang Seng Index is maintained by a subsidiary of Hang Seng Bank, and has been published since 1969. The index aims to capture the leadership of the Hong Kong exchange, and covers approximately 65% of its total market capitalization. The Hang Seng members are also classified into one of four sub-indexes based on the main lines of business including commerce and industry, finance, utilities and properties.
Hang Seng index has been correcting since late January along with other stock markets. I consider the first drop to 29000 levels as wave A, the later triangle pattern as wave B and the latest break of the triangle as Wave C of the Eliott wave ABC pattern. IF this wave count is correct, then Hang Seng could drop to 24000 levels in Wave C (if wave C = 1.62 times ...
Index is heading for 27000. MACD is getting into bearish zone. Below 29000 the it signals breakdown from the
sideways movement continuing for the last couple of months.
HSI moves within a neutral trend channel. It tested the upper limit and is seemingly now on the way to the lower limit. In between we find a fib retracement 78.6% - but this one seems to be weak.
The indicators are confirming the new short trend (RSI broke the trend to down, MACD is heading to negative zone with trigger line short before crossing the signal ...
HSI has reached ATH at 33484 on jan 29. Probably it was the end of wave 5.
After having passed the ATH it fell down on to the lower limit of the existing ascending trend channel.
In the next weeks this limit has been tested till it broke to the bottom.
We can now analyse that the new trend was installed when the index fell on the lower limit of the old trend ...
The HSI seems to be forming a double top on a long term chart. RSI has broke its trend, suggesting weakness ahead. Also facing headline risk with trade war noise. Shorting in to strength for a longer-term bearish play.
Another 2000 more point drop will confirm a strong bear. Within a short span of time it is called a crash.Within a longer span of time, it is called a bear.
Bear is here.
HSI Suppose it goes according to the proposed head and shoulders pattern, the next target would be over 5000 points downwards. I will update once per week.
https://www.tradingview.com/x/Zste9J76/
If it was true that 2018 is a bearish year for emerging markets, then I predict the HSI will go as the figure indicates.
