Hang Seng..Three weeks of declining price! Important Fibonacci l
Hello Traders,
Hang Seng is declining in unison with NIK225 and other Major Asian markets. Only NIFTY50 is working against this trend, only ~130 points below its ATH!
At his way of correction from the high @30280 HS retraced near the 0.618 Fibonacci of the advance, that has started in January 2019. This retracement level is a typical reversal level for a wave „2“ of any degree. For now, there are no facts to observe, that HS has reached a bottom and should reverse soon.
More often than not, indices reverse after a long „shadow“ of the candle to the downside and this behavior is not to see. After three weeks of declining price, HS should show a countertrend if the count is correct and a wave ((i)) of Minute degree has ended at 30280. I have placed alternate labels below the chart to show another possibility.
If HS is extending his weakness to Monday's session, it is likely that the price range of 26733 will be achieved, where a 0.618 Fibonacci is placed. As before, a great chance for the bulls to attack. Wave „2“ retracement often fall steep and sharp and indicate a „bear-market“ is back or to develop.
One more argument for an ongoing decline is the level of Vola for Hang Seng, seen below the chart. I have connected the peaks in Vola with a trendline and the levels, where a reversal occurs has been much higher in the past than the reading is now. It could be possible that HS will push and pop up to the zone ~22.50-27.50 (meaning decling price) and making a bottom in price at this level. But this is not required.
For more confidence and signs that the correction is done, I like to see a „five-up“ at a lower time frame (5-15 min).
Til this is not occurring, the trend is moving lower.
Have a great weekend....
ruebennase
Feel free to ask or comment.
Trading this analyze is at your own risk!
Hang Seng is declining in unison with NIK225 and other Major Asian markets. Only NIFTY50 is working against this trend, only ~130 points below its ATH!
At his way of correction from the high @30280 HS retraced near the 0.618 Fibonacci of the advance, that has started in January 2019. This retracement level is a typical reversal level for a wave „2“ of any degree. For now, there are no facts to observe, that HS has reached a bottom and should reverse soon.
More often than not, indices reverse after a long „shadow“ of the candle to the downside and this behavior is not to see. After three weeks of declining price, HS should show a countertrend if the count is correct and a wave ((i)) of Minute degree has ended at 30280. I have placed alternate labels below the chart to show another possibility.
If HS is extending his weakness to Monday's session, it is likely that the price range of 26733 will be achieved, where a 0.618 Fibonacci is placed. As before, a great chance for the bulls to attack. Wave „2“ retracement often fall steep and sharp and indicate a „bear-market“ is back or to develop.
One more argument for an ongoing decline is the level of Vola for Hang Seng, seen below the chart. I have connected the peaks in Vola with a trendline and the levels, where a reversal occurs has been much higher in the past than the reading is now. It could be possible that HS will push and pop up to the zone ~22.50-27.50 (meaning decling price) and making a bottom in price at this level. But this is not required.
For more confidence and signs that the correction is done, I like to see a „five-up“ at a lower time frame (5-15 min).
Til this is not occurring, the trend is moving lower.
Have a great weekend....
ruebennase
Feel free to ask or comment.
Trading this analyze is at your own risk!