Hang Seng - Looks like US Markets
Updated
Not financial advise. Do your own research. The ideas shared here are the personal opinions of the BitDoctor team. Trade at your risk.
This is textbook corrective bear market action. I can't see this any clearer than it's painted out for us. Here's the low down on HSI on the daily chart:
1. Death Cross on July 16 2018
2. Perfect bearish impulse to complete wave 3 at about 24500. That's taking the trend based fib extension from the high at ~33500 to the pivot low at ~29120 and returning to the end of the corrective 2 at ~31500. The 1.618 extension was at 24475 and the low hit 24540.
3. We are now in a wedge formation as you can see the ABCDE is about 50% complete.
Now, what does this mean? According to my calculation, HSI has approximately 2 to 3 months in this trading range. Likely a 10% loss will occur over the next month, followed by a 10% gain to get us to E and then we will start wave 5. I'm expecting (assuming the wedge plays out) HSI to fully correct down to the 2.618 (or the 618 extension of the wave 3) to about 20200 for a roughly 25% loss.
A lot can happen over the next 2-3 months. I'll keep this chart updated over time. Trade safely friends.
This is textbook corrective bear market action. I can't see this any clearer than it's painted out for us. Here's the low down on HSI on the daily chart:
1. Death Cross on July 16 2018
2. Perfect bearish impulse to complete wave 3 at about 24500. That's taking the trend based fib extension from the high at ~33500 to the pivot low at ~29120 and returning to the end of the corrective 2 at ~31500. The 1.618 extension was at 24475 and the low hit 24540.
3. We are now in a wedge formation as you can see the ABCDE is about 50% complete.
Now, what does this mean? According to my calculation, HSI has approximately 2 to 3 months in this trading range. Likely a 10% loss will occur over the next month, followed by a 10% gain to get us to E and then we will start wave 5. I'm expecting (assuming the wedge plays out) HSI to fully correct down to the 2.618 (or the 618 extension of the wave 3) to about 20200 for a roughly 25% loss.
A lot can happen over the next 2-3 months. I'll keep this chart updated over time. Trade safely friends.
Note
This is a fairly long term watch on Hang Seng so this will be my last update on this for a while. Markets just opened and similar to the US markets, we're seeing some green. I wouldn't plan on shorting any asset in Hang Seng until we actually confirm this wedge because it's possible it just continues going up from here. I've got a suspicion that we've got a while before this gets resolved. Probably a month. I'll be checking in every now and again, though. Stay safe friends.
Note
CE - BitDoctor
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