Hello Traders,
Hang Seng is moving higher since the low at 29504 on April 26! The structure of the advancing price shows overlapping waves, as it is often the case for „b“-waves of any degree.
I have labeld the decline from the wave „i“ high at 30280.10 – 29504.0 as a „flat“-correction, at one higher degree it is possible that a wave „((W)) has endet there, and the countertrend start there is part of a wave ((X)) that may need one more up sequence to complete the advance. Note, that a wave „X“ often, not always, meet the wave „B“ high, let`s say nearly to ~ 80% of the time, and reverse than. So it could be possible that around the level of 30112-30178 a wave ((X)) might be done and a reversal will occur.
On the other hand. The decline from 30280 is just three waves, which is corrective and calls for higher price still, much above the 30280 level. If price will exceed the wave (B) high at 30178.60, the odds are to favor that the zone of 30280 is next, still given the possibilitie for a flat (just a ~ 88% retracement is minimum at this case). If price will extent this level also, the trend is to higher price still and stretching into resistance zone (yellow rectangle) 30309 area.
Have a great weekend....
ruebennase
Feel free to ask or comment.
Trading this analyze is at your own risk!
Hang Seng is moving higher since the low at 29504 on April 26! The structure of the advancing price shows overlapping waves, as it is often the case for „b“-waves of any degree.
I have labeld the decline from the wave „i“ high at 30280.10 – 29504.0 as a „flat“-correction, at one higher degree it is possible that a wave „((W)) has endet there, and the countertrend start there is part of a wave ((X)) that may need one more up sequence to complete the advance. Note, that a wave „X“ often, not always, meet the wave „B“ high, let`s say nearly to ~ 80% of the time, and reverse than. So it could be possible that around the level of 30112-30178 a wave ((X)) might be done and a reversal will occur.
On the other hand. The decline from 30280 is just three waves, which is corrective and calls for higher price still, much above the 30280 level. If price will exceed the wave (B) high at 30178.60, the odds are to favor that the zone of 30280 is next, still given the possibilitie for a flat (just a ~ 88% retracement is minimum at this case). If price will extent this level also, the trend is to higher price still and stretching into resistance zone (yellow rectangle) 30309 area.
Have a great weekend....
ruebennase
Feel free to ask or comment.
Trading this analyze is at your own risk!