HK33 - Channel breakThe HK33 index is in the 4th leg of a major consolidation, that commenced in early 2022.
This will likely be an ABC impulse
A Wave - From Jan - May 24, 2024, this index rallied from mitigated demand at 15,000 to approach 20,000.
B Wave - a corrective phase Jun- August 2024.
C Wave - the next impulse to complete this calendar year, will likely see index move towards 22,000 +.
On the daily chart we can see how the index has filtered lower within a Descending Channel, which is Bullish Structure.
On Monday 5th August, the VSA printed the largest High-volume Bar for the year. It signifies buyers coming into the market in a big way. (This was not an isolated event, as a number of equity markets experienced heightened volume ). This has culminated on last Friday, with a trending bullish candlestick, that broke the channel to upside. It is presently against the 200D MAV at 17578.
When and if the index breaks the 200 MAV, then the bias is likely to shift to one of a bullish sentiment and a greater consideration to go long on this index. This should then be reflected on the monthly chart VSA, with an uptick in volume (as there are plenty of buyers sitting out or on the sidelines for this China Market).
I think the low for this index printed at 15000, and we are very likely to see it appreciate sooner than later.
