Hang Seng...The first waves of a decline?Hello Traders,
Hang Seng has finished a double-zigzag @ 26782 on July 7. The index is declining in the first waves of wave „3“, which would bring HS below it`s March 19 low @ 21139.
the alternate view implies a corrective setback within a wave „2“ and new highs are probably next to expect!
At my later analysis, I spoke about the „Hang Seng Short Index“. This index is moving inverted to the behavior of Hang Seng.
The Short index made a higher low@ July 7 @4692. Since then, Hang Seng Short index is advancing higher, while Hang Seng is in a declining phase. If this behavior is relevant, Hang Seng will make lower lows as long as the July 7 high is in place. That means on the other hand, that the Short index is pushing higher.
An area for this case should be around the 5393 levels, for Hang Seng it would be around 23685 zones (denoted with the red arrow). The more bearish potential exists.
This interpretation is valid, as long as the high @ 26374 is in place. Any advance above the July 7 high @ 26782 would void the bearish forecast.
Have a great week...
ruebennase
Feel free to ask or comment!
Trading this analysis is at your own risk!