Hang Seng Index – Elliott Wave Analysis (Trading Lounge Day Chart)
Hang Seng Index Technical Wave Analysis

FUNCTION: Bullish Trend
MODE: Impulsive
STRUCTURE: Orange Wave 1
POSITION: Navy Blue Wave 3
DIRECTION NEXT LOWER DEGREES: Orange Wave 2
DETAILS: Navy blue wave 2 seems finished; orange wave 1 of 3 is now active.
Wave Cancel Invalid Level: 19215

Market Overview
The daily chart of the Hang Seng Index shows a clear bullish trend. Orange wave 1 is now forming within navy blue wave 3, marking the end of navy blue wave 2's correction. This setup often signals the start of a strong upward movement.

Wave Structure and Momentum
Navy blue wave 2 appears complete, and orange wave 1 is in progress. This impulsive wave reflects solid buying strength. The current setup shows potential for a strong continuation higher. Traders should monitor the 19215 level as a critical invalidation point.

Investment Outlook
This structure gives investors a useful framework. The Hang Seng Index is likely in the early stages of a rally. Orange wave 2, a correction, is expected after this initial move completes. Monitoring trend strength and corrections will help manage positions effectively.

Strategy Note
Traders should watch for signs of wave one completion and be ready for a pullback. Despite early signs of strength, wave one always leads to a correction. Proper risk management is important at this early point in the bullish phase.

Hang Seng Index – Elliott Wave Analysis (Trading Lounge Weekly Chart)
Hang Seng Index Wave Technical Analysis

FUNCTION: Bullish Trend
MODE: Impulsive
STRUCTURE: Navy Blue Wave 3
POSITION: Gray Wave 1
DIRECTION NEXT HIGHER DEGREES: Navy Blue Wave 3 (started)
DETAILS: Navy blue wave 2 seems complete; navy blue wave 3 is now underway.
Wave Cancel Invalid Level: 19215

Market Overview
The weekly chart for the Hang Seng Index presents a bullish trend with strong upward signals. The structure shows navy blue wave 3 forming after the end of navy blue wave 2’s correction. This part of the cycle is usually the strongest in an Elliott Wave impulse.

Wave Analysis and Outlook
Navy blue wave 2 has likely ended, and wave 3 has started. Strong buying interest is visible. The structure inside gray wave 1 confirms this could be a major upward phase. Traders can expect extended movement unless invalidated by a drop below 19215.

Investment Framework
This setup offers a strategic roadmap. The Hang Seng may be entering a high-reward phase. Weekly analysis suggests further gains, but corrections are always part of wave cycles. Keeping an eye on trend indicators is crucial.

Positioning Advice
Traders should look for confirmation signals while setting clear risk limits. Although the setup is strong, wave three eventually faces a pullback. Using the 19215 level helps with managing trade risk during this bullish stretch.

Technical Analyst: Malik Awais

More By This Author:

Elliott Wave Technical Analysis: Ethereum Crypto Price News For Tuesday, May 27
Elliott Wave Technical Forecast Dow Jones
Elliott Wave Technical Analysis: Tesla Inc. - Monday, May 26