Hang Seng: Anticipated Happened
In our previous article on 10th
March 2014 we had mentioned that, “Using Elliott wave analysis we came to the conclusion
that this index is going to underperform in coming months which can drag this
index till its previous pivot low. Failure to protect this low will further
infuse selling pressure.
The
index is quoting above the extended upward sloping lower trendline which has
been providing support to this index from October 2011. Till now this support
has been intact but sooner or later it may breach this support zone. We can
also observe that, prices faced the resistance near 61.8% retracement of the
previous down move (24,111-21,197). Now the next support is its previous pivot
low which is around 21,200 levels.”- Bulls Eye.
We were very accurate in
capturing the move for Hang Seng as it faced the resistance of 61.8%
retracement and moved till its previous pivot low of 21200. The index made a
low of 21137 and closed near the day’s low which is not a healthy sign. Now to
open further negative possibilities, prices need to move below ……. levels which
can drag the index near …… levels.
As per wave theory……………………………………..
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