HSI futures just completed a counter-trend rally ABCD to run smack into the 200-days moving average and I would consider it ripe for a correction. A simple analysis of the higher lows and higher highs would suggest this is a bullish retracement. Zooming out a bit, one would notice there isn't really any support at these levels till the 22,250 level which happens to be:-
#1 the 78.6% retracement of the 2016 - 2018 uptrend
#2 a massive uptrend line which links the AFC, DotCom, GFC and Taper Tantrum troughs.
In both scenarios, we are still talking about an impending correction with the main question being how deep will it cut; <-10% or c.-20%
#1 the 78.6% retracement of the 2016 - 2018 uptrend
#2 a massive uptrend line which links the AFC, DotCom, GFC and Taper Tantrum troughs.
In both scenarios, we are still talking about an impending correction with the main question being how deep will it cut; <-10% or c.-20%