HSI could be in trouble soon....

I have some errant to run tonight, and as a result, I started reading my charts at late hours. So tonight my entry should be relatively short.


Fig 1 HSI Daily Chart
As I look through HSI daily chart, I did not consider its 229 points rise today. Instead I looked at the pattern that it is forming. The thing that come into my mind is: "Double Top" or head and shoulders, depending on how you see it.

It is now getting very close to the neckline at 19,423. It is also clinching on to the negative gradient of the Gann Grid.

One thing that I supposed it to happen is a rebound when it reaches 19,423, but it would not hold and eventually break the neckline. The objective for the Double Top is 15,675.

Both indicators are below 50% and moving down at the moment, indicating an increase of momentum downward.

On wave count, I see a completion of A with a 3-wave a, zig zag b and a 5-wave c, it followed by a zig zag B. I will consider the present situation in HSI is either on 4th or 5th wave of C, which also contained an extended 3rd wave.

The chance of going further down is much higher than up. So breaking the neckline is quite certain. HSI needs a miracle to thurn the tides around.