Hang Seng reach a conservative projection target yesterday, it went higher to reach 10 golden ratio multiples (1.618^10) & 50% retracement level on the left.
The rebound has not prove to be a reversal yet, as price did not go higher than correction zone 26990 & 27575, primary trend remain downtrend. Trader please trade with cautious as price will be volatile...
Hang Seng rebound from initial projection on post 5 Sep & 6 Sep 26431.
The current rebound expect to reach 26773 to 27222 (see left chart). If price did not trade higher that this, the primary trend remain weak and no reversal indication yet. Trend trader can remain sideline as current swing is correction phase.
Both charts showing 3 fibonacci spiral projections. On the left, in Hang Seng Futures Daily charts, the downside room project at 26431 (Around 950 points from now). On the right chart, a 30 minutes chart spiral projection at 27156 (230 points from now). Trader please do not hesitate to sell until price trade higher high.
The two market are not necessary similar, but historically both index have positive correlationship close to 80%. Dow make higher high during June, at the same month Hang Seng breakdown from the range and form lower low. The current divergence has lead both indices correlation to 26%. Is this the outcome of tariff war?
This is a follow-up from my 15 May post; HSI futures completing an intra-day ABCD and making a lower high (78.6% retracement) with a negative MACD cross-over. Initial target would be 30,550, -2% for an eventual test of bottom of the range at 29,500.
Think the chart says it all, HSI futures at top of consolidation channel which sets us up for a nice short to test the bottom of the range at 29550, for 5.5% downside potential. This has a clearly defined stop out range and gives optionality for a potential channel breakdown to test a ABCD target of 27500.
Think the chart says it all, HSI futures at top of consolidation channel which sets us up for a nice short trade to test the bottom of the range at 29550, for 5.5% downside potential. This has a clearly defined stop out range and gives optionality for a potential channel breakdown to test a ABCD target of 27500.
