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Hang Seng ( $HSI_HKG ) Forecasting The Decline

Sep. 28, 2020 12:27 PM ETHang Seng Index (HSI)
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Hello fellow traders. In this technical blog we’re going to take a quick look at the charts of Hang Seng published in members area of the website. As our members know, Hang Seng has given us a decent pull back recently. We got decline within the cycle from the July 6th peak ,when the price reached extremes at 23170-22552 as were expecting. . In the charts below, we’re going to explain the Elliott Wave structure.

Hang Seng Elliott Wave 4 Hour Chart 9.16.2020

Current view suggests The Index is correcting the cycle from the 05/28 low. Pull back is having form of Elliott Wave Double Three Pattern that has scope to extend down toward 23170-22552 area , which (W)-(X) blue equal legs . Correction is incomplete at the moment. So far we got 5 swings , consequently we are expecting another leg down to complete 7 swing down from the 07/06 peak.

Let's take a look at H1 charts to see what short term price structure looks like.

Hang Seng Elliott Wave 1 Hour Chart 9.16.2020

The index has given us short term recovery against the 25847 peak, marked as B red. At this stage we see B red completed at the 24833 high as Elliott Wave Flat pattern. As far as the price stays below current short term high, we believe next leg down is taking place. However we need to see break of A red ( 09/09 ) low in order to confirm next leg down is in progress toward 23170-22552 area.

You can learn more about Elliott Wave Flat and Double Three Patterns at our Free Elliott Wave Educational Web Page.

Hang Seng Elliott Wave 1 Hour Chart 9.22.2020

Wave B red peak held nicely during short term bounces. Eventually Hang Seng made further separation from the 24833 high and broke toward new lows. Hang Seng is now bearish against the 24833.9 peak in first degree. We got confirmation 7th swing is in progress toward 23170-22552 area.

Keep in mind market is dynamic and presented view could have changed in the mean time. You can check most recent charts in the membership area of the site. Best instruments to trade are those having incomplete bullish or bearish swings sequences.We put them in Sequence Report and best among them are shown in the Live Trading Room.

Elliott Wave Forecast

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