Interpretation of HSI

It is not so easy for me to interprete HSI at the moment. It has obviously reached the wedge objective, the wave count on the other hand is a little confusing and I do not know whether it has already ended, at least base on the Daily Chart. Nevertheless, I need a way to interprete HSI to determine if it is done with the down wave.


Fig 1 HSI Daily Chart

If I consider a head and shoulder pattern formation on HSI, it should be heading for 18,737. This is also where the Fibonacci support is at. There is a resistance at 20,780, probably if this resistance is broken, it might head for 21,444 which is the neck line for the head and shoulder formation.