Hang Seng....Big Picture!Hello Traders,
today I`d like to check the Big picture view for Hang Seng.
Let`s start with the weekly!
In January 2018 Hang Seng made its ATH @ 33484 intraday and @ 32601.8 on a closing basis. Since that day the Index is in a corrective mode, which brought him to @ 21139 intraweek low and 22805.1 on a closing basis (weekly close). It bounced since to the upside within a not clear move. To my view, this could be part of an A-B-C move that is not done to the upside, or it can morph into a new impulse, with new ATH`s to come in the weeks and months ahead!
On a long term picture, here daily time frame, you will observe, that HS has touched and overcome the long term resistance line (blue), drawn from the low @ 24540 on October 2018 multiple times, but failed to overcome it on a closing basis to generate a new impulse. This week's trading brought HS to pop above this trendline (blue) and it too popped above the declining trendline (green), which connects the high`s at 29174-28055-24528 with a massive gap to the upside (Ellipse)! This behavior could be the first hint that the correction is done.
If HS is able to rise in the coming week sessions, it could advance above the high @ 24855 and after it can close the open gap, left by trading as of March 11-12`20 (253231-22519)!
But note! The structure from the high @ 29174 on January 21 to 21139 on March 19 is open to different interpretations. So for the bulls, a stop level is@ 22519.7, the low on May 25! Obviously HS has more room to move up, `cause from a technical perspective, the ratios HS has moved to is between the 0.3872 and 0.5 Fibonacci of the latter decline. So, the 0.618 @ 26111 is an open target as long as HS is trading above the green trendline. Only a daily close below this line would alter this view.
For the intraday analysis, I will update the count in the coming 1 or 2 days.
Have a great weekend...
ruebennase
Feel free to ask or comment!
Trading this analysis is at your own risk!
