Watchout for early optimism in HS50,HS50 - Intraday - We look to Sell at 18890 (stop at 19100)
Although the bears are in control, the stalling negative momentum indicates a turnaround is possible.
A higher correction is expected.
With the Ichimoku cloud resistance above we expect gains to be limited.
We therefore, prefer to fade into the rally with a tight stop in anticipation of a move back lower.
Our profit targets will be 18285 and 18130
Resistance: 19165 / 19800 / 20320
Support: 18130 / 16940 / 15425
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HANGSENG trade ideas
Can the Hang Seng cobble together a sympathy bounce?Whilst the overall trend and sentiment point lower, yesterday’s false break of support could provide a potential bounce for the Hang Seng index.
Despite its downtrend on the daily chart, the HSI produced a strong bullish engulfing candle on the 25th of August which showed strong demand around 19,200 – a level which has held since May (and a similar candle occurred). Whilst it printed a bearish pinbar and then fell back below 20,000, the fact it took 6 days to unwind the gains of the engulfing candle can be seen as a form of strength.
Also note that we saw a false break of the 19,200 support area yesterday despite the negative sentiment, and the day closed with a bullish hammer. Furthermore, the hammer formed and closed above key support and the weekly S1 pivot point, and a bullish divergence formed on the RSI.
The near-term bias remains bullish above yesterday’s low and for a move back to the 20-bar eMA, or weekly pivot point. Whereas a break beneath yesterday’s low (or daily close) assumes its next leg lower has begun and brings the 18,400 region into focus.
Hang Seng Index - initiating analysis coverageFor personal interests, analyses on the HSI will be initiated...
The weekly chart closed on a bearish note, at a 5 year low. Close to a suuport at 19,200, if it breaks down -250 points, there would be more downside to the last low of March 2022, at 18,235.
As with many of the analyses done this weekend, a lot of indications that the last low will be revistied.
The daily chart has a breakdown over he last week, and daily technicals are crossing under. These are indicative of more downward momentum.
Overall, bearish aura prevails for the Hang Seng Index.
Long-term Technical Analysis Using Elliott Wave TheoryCaution Elliot wave theory involves the subjectivity of the analyst, so the prediction and analysis may differ from the truth.
Ending diagnostics, starting with Impulse Wave 4, typically return prices to extreme levels
Also, at the same time as the two long-term log trend lines were broken, the Fibonacci 0.382 level was also broken
If the breakthrough is successful, the macroeconomic perspective also indicates that there could be a war that has a huge impact on the economy
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