Hello Traders,
Hang Seng Index reversed after making it`s low @ 28201 on March 11. At this way, it leaves an „Island-reversal-gap“ that indicate a change of trend, here short-term.
So, there remain some variation short-term to interpret this move. I´d like to explain two of them.
Declining from 29241.80 – 28201 was either an „a-b-c flat“ correction (keep in mind that „flat“ is a catch all name for all corrections, that develop within a“three“ up- or down. So it remain possible that this correction was all, maybe within a wave „4“ and we are up to new highs above 29214.8 short-term!
On the other hand...The pullback off this low leaves a „Island-reversal Gap“ and could be part of a wave „b“ of a flat -correction of one higher degree. To develop as one, Hang Seng must achieve at minimum to the 29116 level, which is the 0.88 Fibonacci of the decline. This is the minimum expectation to be a „flat“! It would be much clearer to achieve the level of 29214.8 zone by developing, but the 0.88 level is enough to get more confidence. If so, after this level (29116-29214) Hang Seng should decline within a wave „c“ down to lows @ 28201 area. This move would complete the „flat-pattern“ and a change of trend is next to occur or a more complex structure is under way. At the time right now, it is not clear to judge what will be next.
A triangle pattern could also be underway if we stuck in a wave „4“ correction.
So, while there are many variation are open to interpret my view is not clear, we will wait as more evidence of the wave structure develop.
Have a great day...
ruebennase
Feel free to ask or comment.
Trading this analyze is at your own risk!
Hang Seng Index reversed after making it`s low @ 28201 on March 11. At this way, it leaves an „Island-reversal-gap“ that indicate a change of trend, here short-term.
So, there remain some variation short-term to interpret this move. I´d like to explain two of them.
Declining from 29241.80 – 28201 was either an „a-b-c flat“ correction (keep in mind that „flat“ is a catch all name for all corrections, that develop within a“three“ up- or down. So it remain possible that this correction was all, maybe within a wave „4“ and we are up to new highs above 29214.8 short-term!
On the other hand...The pullback off this low leaves a „Island-reversal Gap“ and could be part of a wave „b“ of a flat -correction of one higher degree. To develop as one, Hang Seng must achieve at minimum to the 29116 level, which is the 0.88 Fibonacci of the decline. This is the minimum expectation to be a „flat“! It would be much clearer to achieve the level of 29214.8 zone by developing, but the 0.88 level is enough to get more confidence. If so, after this level (29116-29214) Hang Seng should decline within a wave „c“ down to lows @ 28201 area. This move would complete the „flat-pattern“ and a change of trend is next to occur or a more complex structure is under way. At the time right now, it is not clear to judge what will be next.
A triangle pattern could also be underway if we stuck in a wave „4“ correction.
So, while there are many variation are open to interpret my view is not clear, we will wait as more evidence of the wave structure develop.
Have a great day...
ruebennase
Feel free to ask or comment.
Trading this analyze is at your own risk!