Hang Seng.....Island-gap! Hello Traders,
at my analysis on April 19, I wrote following:
„I like to see a „break“ of the high's at 29101 and 29152 on an hourly basis at minimum! Strong volume to the upside would strengthen the bullish view.“
Hang Seng broke above this area, but failed to exceed to the mentioned area. It just touched the 29388 level and reversed.
Further I wrote: „A rise above 29152 on a daily close open the door to 29600 area. If this move occurs, a could be a wave „b“, `cause the decline from the possible wave ((iii)) high at 31183 looks like a „three-down“!
The weakness for HS was clear to observe and some hours after advancing the 29388 area, it creates an „Island-gap“ (bearish sign) to the opening session on April 30.
Clear to see is, that the move from the 27505 low on March 25 shows overlapping waves, means a corrective structure.
So, it won't surprise me, if HS will show further weakness in the coming hours, maybe days.
As I often wrote in the past, I would wait for more clear structure to buy HS. One argument could be a rise above the 29450-29592 area, the possible wave (b) high, and step into the market with a „Stopp-buy“ order!
A decline to 29287 area should open the door to the possible wave (c) of ((iv)) low. In this case, the count needs to be re-adjusted!
Have a great Sunday.....
Ruebennnase
Feel free to ask or comment1
Trading this analysis is at your own risk!
