Hong Kong 33Short
HSI HK33HKD Will Fib61.8 retrace be able to hold the rally?
prnt.sc/sx0hdx
Last post saw prices negating 'the 5th wave' with a strong rally. Thus, we can only attribute it to a series of impulses and corrective waves of Wave 4.
A further updated post mentioned prices taking us up (in this case and currently, pin point to the Fib61.8 of wave 3 as can be seen in the chart).
As the gap between Fib61.8 and Fib78.6 is rather large,we may see prices rise to 25800+ region, reject the strong resistances there (without negating the EW guidelines) and start turning back.
This would still constitute rejection of Fib61.8 (let's wait for candle close of Daily and weekly to see). I would be rooting for a 'not so bullish' looking bar on the weekly TF by week's end.
However, it could also turn back down today as prices has taken out a bunch of SLs placed above the pin bar rejecting a popular Moving average value on the Daily TF.
Let's monitor the situation (especially this evening's FED event) before turning the tune towards bearish.
In short, Let's wait for a good entry and ride the momentum.
Areas/regions to short:
25300 (Fib61.8 retrave of wave 3)
25600 (Rejection of last known support when wave 3 occured)
25800 (Rejection of current Fib ext 127 and other resistances)
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