Hang Seng closed this week at 25801, a loss of -1.89 (according to teletrader.com). This was the lowest closing since mid-May 2018 and is maybe a wave 4 of Minor degree.
It drops below the blue trend channel that I have marked as important and closed right at the lower line of it. There remain an open Gap at chart, implying the same possibility as for N50. A Gap to the upside on Monday`s opening bell gives us the chance for an “Island-reversal” and a change of trend short-term.
A drop below Fridays low will open the door to may lower lows in the coming days and will support the view, that a longer-term correction is underway!
I have marked a zone of importance with a yellow at chart. This act as a which must be taken out of marked for rising trend and move. If so within the next hours and days of trading we have targets around 26500-26720 area.
Even too, a run through the upper (blue) will support the view and increase the odds that an important low is in place. Any advance above the blue trend-channel on a daily closing basis will manifest this idea.
Again. While multiple counts are available I will wait which one will step to forefront.
Have a great week…
Feel free to ask or comment.
As always: This analyze can be wrong. Trading this is for your own risk! Take notice.