Hang Seng (Hong Kong): To start the 3rd wave

Hang Seng was losing its gains after a significant up move from 21137 to 23224. The fall from 23224 to 21680 was a double correction pattern (a-b-c-x-a-b-c), prior to this fall the up move from 21137 to 23224 was a impulsive up move which we have counted wave i (marked on daily chart). Wave ii will be corrective in nature and it seems that wave ii got completed at 21680 levels as it has arrived till 76.2% retracement of the previous up move (21137-23224). Now Hang Seng will start picking up momentum and can move up till 24000 levels which is more than 100% of the previous wave i. This up move will start wave 3 which is strongest, longest and broadest.

In short, our bias for Hang Seng is firmly positive as it can move up till 24000 levels in coming weeks.


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