Hang Seng Index

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Hang Seng Index Elliott Wave Technical Analysis

FUNCTION: Trend

MODE: Impulsive

STRUCTURE: Orange wave 3

POSITION: Navy blue wave 3

DIRECTION NEXT HIGHER DEGREES: Orange wave 3 (in progress)

DETAILS : The analysis suggests that orange wave 2 has likely completed, and orange wave 3 is now unfolding.

Wave Cancel Invalid Level: 16470.25

The Hang Seng Index is analyzed using Elliott Wave theory, indicating that the market is currently in an impulsive trend. The primary wave structure identified is orange wave 3, signaling a strong upward movement within the broader Elliott Wave framework. This wave is situated within navy blue wave 3, further highlighting the ongoing bullish momentum.

Prior to the initiation of orange wave 3, the market experienced orange wave 2, which typically signifies a corrective phase or a pullback within the overall upward trend. The completion of orange wave 2 suggests that the market has now resumed its upward trajectory, leading to the development of orange wave 3.

Orange wave 3 is anticipated to continue propelling the market higher as it unfolds. This wave is a critical component of the Elliott Wave structure, often associated with substantial price increases. The analysis implies that following the completion of orange wave 3, the market may enter another corrective phase, potentially leading to the formation of orange wave 4.

A key aspect of this analysis is the wave cancellation invalid level, set at 16470.25. This level is crucial because a decline below it would invalidate the current Elliott Wave count, indicating that the anticipated upward trend may not proceed as expected, necessitating a re-evaluation of the wave structure.

In summary, the Hang Seng Index is currently experiencing a robust impulsive upward trend, with orange wave 3 in progress following the completion of orange wave 2. The market is likely to continue its upward movement, with the wave cancel invalid level at 16470.25 being a critical point to monitor for any potential changes in the wave pattern.

(Click on image to enlarge)

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Hang Seng Index Elliott Wave Technical Analysis

• FUNCTION: Trend
• MODE: Impulsive
• STRUCTURE: Orange wave 3
• POSITION: Navy blue wave 3
• DIRECTION NEXT HIGHER DEGREES: Orange wave 3 (in progress)

DETAILS:
The analysis indicates that orange wave 2 appears to have completed, and orange wave 3 is now in play.
Wave Cancel Invalid Level: 16470.25

The Hang Seng Index is currently being analyzed using Elliott Wave theory, which reveals that the market is in an impulsive trend phase. The primary wave structure identified is orange wave 3, which is a component of a broader upward trend. This wave is situated within navy blue wave 3, further underscoring the strength and continuation of the bullish momentum in the market.

Prior to this phase, the market completed orange wave 2, typically representing a corrective phase within the Elliott Wave cycle. The conclusion of this corrective wave suggests that the market has now transitioned back to an upward trend, initiating the development of orange wave 3. This wave is expected to continue driving the market higher as it progresses.

The market's direction is consistent with the next higher degree of trend, with orange wave 3 already underway. This wave is a crucial element in the Elliott Wave structure, as it usually signals a significant and strong price movement. The current analysis supports the expectation that the market will maintain its upward trajectory as orange wave 3 unfolds.

The wave cancel invalid level is set at 16470.25, serving as a critical threshold. Should the market drop below this level, the current Elliott Wave count would be invalidated, suggesting that the anticipated bullish trend might not continue as expected. This level is crucial to monitor, as breaching it could indicate the need to reassess the wave structure.

In conclusion, the Hang Seng Index is in an impulsive trend phase, with orange wave 3 in progress following the completion of orange wave 2. The market is expected to continue its upward movement, with the wave cancel invalid level at 16470.25 being a key point to watch for any potential changes in the market's wave structure.

(Click on image to enlarge)

Technical Analyst : Malik Awais

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