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# Hang Seng ( \$HSI-HKG) Buying The Dips After Elliott Wave Zig Zag

Feb. 22, 2021 10:38 AM 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 Elliott Wave charts of Hang Seng ( \$HSI-HKG), published in members area of the website. As our members know, the index is showing impulsive bullish sequences. We've been calling rally in Hang Seng , recommending members to avoid selling in any proposed pull back and keep buying the dips in 3,7,11 swings. Recently Hang Seng made pull back that has unfolded as Elliott Wave Zig Zag pattern . In the further text we are going to explain the Elliott Wave Pattern and Forecast

Before we take a look at the real market example, let’s explain Elliott Wave Zigzag.

Elliott Wave Zigzag is the most popular corrective pattern in Elliott Wave theory . It’s made of 3 swings which have 5-3-5 inner structure. Inner swings are labeled as A,B,C where A =5 waves, B=3 waves and C=5 waves. That means A and C can be either impulsive waves or diagonals. (Leading Diagonal in case of wave A or Ending in case of wave C) . Waves A and C must meet all conditions of being 5 wave structure, such as: having RSI divergency between wave subdivisions, ideal Fibonacci extensions and ideal retracements.

#### Hang Seng Elliott Wave 1 Hour Chart 1.31.2021

Hang Seng remains bullish against the 26004.5 low in first degree. Short term pull back is unfolding as Elliott Wave Zig Zag pattern with inner labeling: ((A))((B))((C)) black. We can see that waves ((A)) and ((C)) shows impulsive 5 waves structures which is characteristic of Zig Zag Patterns. Pull back has already reached its equal legs zone at 28666.9-28075.9 area and we can see turn any moment . We favor the long side from the mentioned zone. As the main trend is bullish we expect buyers to appear for 3 waves bounce at least. As our members know, Blue Boxes are no enemy areas , giving us 85% chance to get a bounce.

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

#### Hang Seng Elliott Wave 1 Hour Chart 2.02.2021

The index found buyers at 28666.9-28075.9 buyers zone- the Blue Box area. We got nice reaction from there so far. Pull back ended is counted completed at 2876.5 low as Elliott Wave Zig Zag Pattern. As far as the price stays above that level, we expect to see further. However we would like to see further break above (5) peak to confirm next leg up is in progress.

#### Hang Seng Elliott Wave 1 Hour Chart 2.02.2021

Eventually we got rally toward new highs. The index is now bullish against the 28259 pivot. We expect it to keep finding buyers in 3,7,11 swings ideally.Keep in mind that market is dynamic and presented view could have changed in the mean time. 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. You can check most recent charts in the membership area of the site.

Elliott Wave Forecast

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