Hang Seng...More Bears to come?Hello Traders,
Hang Seng had one more down-week and closed @ 26146.7, after a weekly low of 26038.4! From a candlestick analysis, there is a „bullish-inverted-hammer“ to observe! But handle this pattern with patience!
At the weekly chart, you will observe that the decline from the possible wave „z“ high @29174.9 looks not as done. So the first leg of the decline could be a wave „a“ and the countertrend that followed a wave „b“ that ended @ 28055.6. So the second leg down is a wave „c“ that retraced a 0.618 Fibonacci of wave „a“ what is in rare cases all of the declines, but this is not required! So a common target range for HS if it drops below Friday`s low @ 26038.4 is wave equality @ 25032, where wave „a“=“c“! Such behavior would occur with a drop below the lower boundary of the possible triangle idea I mentioned at my last analysis!
At the daily chart, there is to notice, that HS reversed at the 0.382 Fiboacco of the decline from 28055-25989, implying more selling pressure ahead. Notice the technical information by checking out the STOCH (5,3,3), reversing at the 50% level, what is the border from bear to bull phase; and MACD, reversing downwards too!
So, if HS is breaking below Monday`s low (March 2) @ 25989, the odds are to favor that another leg of selling period is next, could bring the index down to wave equality @ 25026. Such behavior would make some of my counts invalid and I need to adjust the counts!
For the bullish view, HS needs to break above the high @ 26788 (0.382 Fibonacci ) ion a closing basis with massive volume and a daily close at minimum.
Have a great weekend....
ruebennase
Feel free to ask or comment.
Trading this analysis is at your own risk!
