Monday, 27 April 2015

Hang Seng short offering great risk to reward ratio if (if) it goes < 28000

Weekly chart shows that today the Hang Seng has poked above trend channel resistance. A move back below today's low, or to play it safe 28000, would take the market back inside the trend channel.

Zooming out shows my preferred Elliott Wave count and the scenario that could unfold on a move back inside the trend channel. Great risk to reward ratio against the eventual high of the current rally, which could turn out to be today's high. Let's see.