Hang Seng...Powerful advance!Hello Traders,
at my analysis, published on January 31, I placed a note below the chart, meaning that the next significant move is to the upside, may as a „countertrend“!
The next day (Feb 3) HS gaped to the downside by the opening bell and raise since that day nearly 1500 points to closing of 27900 points today. While this advance is not a clear „impulse“ the odds are still valid, that we see a countertrend. For both interpretations, I need more patterns to judge.
In the short term, HS has closed an open-gap, left by the trading on January 24-29. There remains another open gap from 28795-28449. This might be filled, but it is not a requirement. If so to come, Hang Seng will retrace more than a 0.786 Fibonacci of the decline, which will make a countertrend less probable.
On a short term window, we can observe, that the advance from 26144-27823 is developing in a „three-up“ what makes it countertrend internal. So the next level of resistance is at or around the 28017 (0.618 Fibonacci)! This meets along with the center-line of the rising trend-channel that connects the highs and low`s of the w-x-y-x-z correction.
A push above the 0.618 Fibo level opens the door to 28526.
Any decline below the level of 27241 (closing) will open the door to a „gap-close“ on the open gap from 26786-27174, February 5-6!
In this case, more bearish potential exists.
Have a great week...
ruebennase
Feel free to ask or comment.
Trading this analysis is at your own risk!
