The HSI monthly chart

My last post took me a day and a half to complete. It is the longest I have ever taken to complete a single entry. Not to mention the need to re-write the whole article to improve the flow of the content.

By right, I should be resting by now, so why this entry?

While working on the previous entry, I up-loaded the HSI monthly chart as a reference. When I glanced through the chart, I found something interesting., however, due to the purpose of the chart then, this part was omitted.

Fig 1. Hang Seng Monthly Chart

There are in fact a few things that I noticed about this chart, first, steep decline between 2007 to 2008. This followed by a gentle climb until 2018. Further to that, each wave maintained a 3-wave formation, signals to me that it is in the in process of counter wave. 

Lastly, the latest bar (in circle), while incomplete, is presently indicating its intention to continue on the down trend. At present moment, the alignment of the moving averages support this trend.

Using Fibonacci projection, its 100% objective is 18,838, which it has achieved by March this year. If I utilize expansion, is with support only at 13,510 (61.8%) to 8,794 (100%), coinciding with the double top objective. 

If this is true, Hong Kong is going to go through a hard time.