Hang Seng Index Elliott Wave analysis (daily chart)
Function: Counter Trend.
Mode: Corrective.
Structure: Gray Wave 2.
Position: Orange Wave 3.
Direction next higher degrees: Gray Wave 3.
Details: Gray Wave 1 is completed, with Gray Wave 2 currently unfolding.
Wave cancel invalidation level: 16,470.25.
The Hang Seng Index daily chart, analyzed through Elliott Wave principles, reveals that the market is in a counter-trend phase, operating in a corrective mode. The structure forming is Gray Wave 2, which comes after the completion of Gray Wave 1. This suggests that the market previously experienced an impulsive move during Gray Wave 1 but is now undergoing a corrective phase in Gray Wave 2.
Gray Wave 1 is marked as complete, indicating that the initial impulsive move has concluded. Presently, Gray Wave 2 is active, symbolizing a retracement or consolidation phase before the market potentially continues its next upward impulsive movement in Gray Wave 3. The position of Orange Wave 3 within this framework implies that the current corrective action is occurring within a broader trend.
The chart suggests that the market is preparing to continue the broader trend, with Gray Wave 3 anticipated to follow the conclusion of Gray Wave 2. This forthcoming wave is likely to signal a return to an impulsive move, pushing the market higher. However, until Gray Wave 2 is completed, the market remains in a corrective phase, adjusting from the initial impulsive action of Gray Wave 1.
The wave cancel invalidation level is set at 16,470.25. If the index drops below this level, the current Elliott Wave count would be invalidated, indicating a possible shift in market direction. As long as the index remains above this level, it is expected that the market is merely in a corrective phase before resuming its upward trend.
In summary: The Hang Seng Index is currently in a corrective phase with Gray Wave 2 in progress after the completion of Gray Wave 1. The market is expected to resume its upward trajectory in Gray Wave 3 after the corrective phase ends, provided the index stays above the wave cancel invalidation level of 16,470.25.
Hang Seng Index Elliott Wave analysis (weekly chart)
Function: Bullish Trend.
Mode: Impulsive.
Structure: Orange Wave 3.
Position: Navy Blue Wave 3.
Direction next higher degrees: Orange Wave 3 (Started).
Details: Orange Wave 2 is completed, with Orange Wave 3 now in progress.
Wave cancel invalidation level: 16,470.25.
The Hang Seng Index weekly chart, analyzed using Elliott Wave theory, reveals that the market is currently in a bullish trend. The mode is impulsive, indicating a strong upward movement. The current structure forming is Orange Wave 3, which follows the completion of Orange Wave 2.
Orange Wave 2 appears to have concluded, signaling the market's shift into Orange Wave 3. This transition from a corrective phase (Wave 2) to a new impulsive wave (Wave 3) suggests that the market is poised to continue its upward momentum. The presence of Navy Blue Wave 3 within this structure further reinforces the ongoing bullish trend.
The analysis indicates that the market is set to maintain its upward trajectory, driven by the development of Orange Wave 3. As long as the Hang Seng Index stays above the wave cancel invalidation level of 16,470.25, the current Elliott Wave count remains valid, supporting the expectation of continued bullish movement.
In summary: The Hang Seng Index weekly chart suggests that the market is in a bullish trend, with Orange Wave 3 currently unfolding after the completion of Orange Wave 2. The impulsive nature of this trend points to further upward movement, bolstered by the position of Navy Blue Wave 3. The wave cancel invalidation level of 16,470.25 is a critical threshold; as long as the market remains above this level, the bullish outlook is expected to persist, with further gains anticipated as Orange Wave 3 progresses.
Hang Seng Index Elliott Wave technical analysis [Video]
As with any investment opportunity there is a risk of making losses on investments that Trading Lounge expresses opinions on.
Historical results are no guarantee of future returns. Some investments are inherently riskier than others. At worst, you could lose your entire investment. TradingLounge™ uses a range of technical analysis tools, software and basic fundamental analysis as well as economic forecasts aimed at minimizing the potential for loss.
The advice we provide through our TradingLounge™ websites and our TradingLounge™ Membership has been prepared without considering your objectives, financial situation or needs. Reliance on such advice, information or data is at your own risk. The decision to trade and the method of trading is for you alone to decide. This information is of a general nature only, so you should, before acting upon any of the information or advice provided by us, consider the appropriateness of the advice considering your own objectives, financial situation or needs. Therefore, you should consult your financial advisor or accountant to determine whether trading in securities and derivatives products is appropriate for you considering your financial circumstances.
Recommended content
Editors’ Picks
![EUR/USD extends losses toward 1.1000, US PMIs awaited](https://editorial.fxstreet.com/images/Markets/Currencies/Majors/EURUSD/money-59004818_XtraSmall.jpg)
EUR/USD extends losses toward 1.1000, US PMIs awaited
EUR/USD resumes the downside toward 1.1000 in the European session on Tuesday. The pair stays on a slippery slope, courtesy of the sustained US Dollar recovery, a cautious mood and uncertainty around the ECB's rate outlook. US ISM Manufacturing PMI awaited.
![GBP/USD drops back toward 1.3100 ahead of US PMI data](https://editorial.fxstreet.com/images/Markets/Currencies/Majors/GBPUSD/iStock-472155766_XtraSmall.jpg)
GBP/USD drops back toward 1.3100 ahead of US PMI data
GBP/USD has come under renewed selling pressure, eyeing 1.3100 in European trading on Tuesday. A fresh US Dollar uptick and a risk-averse market environment bode ill for the pair, as traders shift their focus to the US ISM manufacturing PMI data for fresh trading impetus.
![Gold seesaws as traders fold their arms ahead of labor market data](https://editorial.fxstreet.com/images/Markets/Commodities/Metals/Gold/Gold_Bar_XAU_Precious_Metal_XtraSmall.jpg)
Gold seesaws as traders fold their arms ahead of labor market data
Gold trades around $2,500 as risk recedes, markets are calm, and the US Dollar recovers marginally. Traders await US labor market data this week before determining their next moves.
![Bitcoin and Ethereum whale activity declines 50% while BTC, ETH accumulation continues](https://editorial.fxstreet.com/images/Markets/Currencies/Digital%20Currencies/Bitcoin/bitcoin-39275418_XtraSmall.jpg)
Bitcoin and Ethereum whale activity declines 50% while BTC, ETH accumulation continues
Bitcoin and Ethereum whale activity has slowed down since mid-March 2024 when it hit its peak this year. In March 2024, Bitcoin and Ethereum prices hit a peak of $73,777 and $4,093. The two largest cryptocurrencies have noted a correction in their prices since then.
![Week ahead: US labour data and the BoC rate announcement in focus](https://editorial.fxstreet.com/images/Macroeconomics/EconomicIndicator/Employment/NFP/working-america-gm173864680-9188844_XtraSmall.jpg)
Week ahead: US labour data and the BoC rate announcement in focus
With US Federal Reserve Chair Jerome Powell’s recent speech at the Jackson Hole Symposium confirming that it is time to begin easing policy as well as underlining the importance of the jobs market, this week’s jobs data may help determine how the Fed approaches its easing cycle.
![Moneta Markets review 2024: All you need to know](https://editorial.fxstreet.com/images/IT/Testing/Review/FXSBadgeCertifiedBackg_XtraSmall.png)
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.