Hang Seng.....Back to a wave 4 level! And now?Hello Traders,
Hang Seng made a high on February 16 at 31183 with an intraday peak and on 30644.74 on a closing basis. Since then, HS has declined to new lows at 28326 (intraday) and 28497.39 on a closing price today!
Price have declined to a wave ((iv)) level and this is often a target for a corrective setback! So, on a short term view, it could be, that we have seen a first leg of a decline that has ended today.
On the hourly chart, you will take notice of the „Hammer-candle“, a reversal-candle as it's best!
As long as the low of this candle (@ 28376.22) is valid it is possible for HS to rise higher in the coming hours. One area for that reversal should be the high and the „kick-off“ of the sell-off candle today, at 28571.05!
Notice, that traders who sold HS at this level have a high interest to hold price below that level. So it could be a „hard fight“ ahead in the coming hours for that level!
On the other hand. Any decline below today's low at 28376 would bring a lower price in the coming hours, `cause the best sell-signal is a failed buy-signal! A first stop could be at 28130 area and below to 277xx levels.
Only an advance above the possible wave (c) high at 29596 could clear the view for the bulls.
Have a great week.....
Ruebennase
Feel free to ask or comment!
Trading this analysis is at your own risk!
