HSI Reload..

Well, the title sound like one from the Matrix. In fact, tonight I made it a point to reload the HSI chart with my fingers crossed. Luckily the loading was success. So now I can keep a record of what I said on HSI in picture.

Btw, HSI managed to climb higher today, so how well did it perform as compared to what I have predicted?


Fig 1 HSI Daily chart

A first look on HSI by any chartist will notice the BIG wedge. According to a book that I have read, such wedges appears on 5th wave. So I can safely consider HSI to be completing its 5th wave.

The event in Dubai drove HSI to gap down below the envelop of the wedge effectively confirmed the wedge formation. The measurement of the wedge will lead HSI to 19,847.

The daily indicators so far seems to support a retracement upward since they are both at the bottom. However the weekly chart would tell a different story.



Fig 2 HSI Weekly Chart

Most of the time a wedge formation in the daily chart might not be visible in the weekly chart. However, the wedge is carried to a higher time frame in this case.

The indicators here are showing that HSI is in the midst of falling, meaning it has some more to go before it will stop.

I am only interested to know with Dubai coming to a "close", will the set up break down?