Hang Seng...Short term down?Hello Traders,
on May 22 Hang Seng made it`s low @ 22519 within a wave „X“ and advanced to 25303.8, a wave „Y“! The correction since that day is not a clear impulse down, nor is it a clear corrective pattern.
While the advance from 22528 (wave „X“) is a countable „five-up“ let`s check the targets to both sides.
If this move from 22528 is a fresh new impulse, the retracement for a wave „2“achieved the 0.618 Fibonacci, found support at the rising green trendline, what could be all of the correction.
If so, a push to new highs is next to occur and may have started @ 23588 yesterday. To establish this view, Hang Seng needs to advance above the area of 24685-24957 on an hourly closing price.
On the larger timeframe, it could be possible, that this move is part of the very first patterns of the resumed downtrend. The decline from 25303- 23685 retraced the 0.5 Fibonacci and is either wave „2“ or wave „a“ of wave „2“ which could develop as a „expanding-flat“!
So a break below the 23685 would strengthen the odds, that a wave „3“ is underway. This must be done with massive volume and a bear-candle1
So I guess, the next hours will be pretty important for the coming week and will bring more clarity to the developing wave patterns!
Have a great week...
ruebennase
Feel free to ask or comment!
Trading this analysis si at your own risk!
