Hang Seng index Elliott Wave technical analysis [Video]

Hang Seng Index Elliott Wave technical analysis

Function: Bullish Trend.

Mode: Impulsive.

Structure: Orange Wave 1.

Position: Navy Blue Wave 3.

Direction (Next lower degree): Orange Wave 2.

Details:

Navy blue wave 2 appears completed, and orange wave 1 of navy blue wave 3 is now in play.

Wave cancellation (Invalidation) level: 19215.

The daily chart of the Hang Seng Index indicates a bullish trend based on Elliott Wave theory. Price action currently reflects the impulsive formation of orange wave 1, within the broader navy blue wave 3. This setup points to the early phase of a potential strong uptrend.

The completion of navy blue wave 2 confirms the start of orange wave 1. This early wave movement suggests a shift into a new bullish phase. The impulsive structure signals increasing buying momentum and potential upward acceleration.

19215 is the invalidation level — a drop below this threshold would negate the current bullish outlook. As long as the index holds above this level, traders may consider the setup valid, expecting further gains.

This phase represents an early opportunity for traders, with the completion of orange wave 1 likely followed by a corrective orange wave 2, offering a secondary entry point. The position within navy blue wave 3 suggests a potentially significant upward trajectory.

Hang Seng Index Elliott Wave technical analysis

Function: Bullish Trend.

Mode: Impulsive.

Structure: Navy Blue Wave 3.

Position: Gray Wave 1.

Direction (Next lower degree): Navy Blue Wave 4.

Details:

Navy blue wave 2 looks completed; navy blue wave 3 is currently in progress.

Wave Cancellation (Invalidation) Level: 19215

The weekly analysis of the Hang Seng Index confirms a bullish trend, supported by impulsive price action. The wave structure currently shows navy blue wave 3 developing within gray wave 1. This signals the start of a potentially long-term uptrend.

With navy blue wave 2 concluded, the index has entered navy blue wave 3 — often the strongest segment in the Elliott Wave sequence. The impulsive nature of this wave suggests sustained upward pressure. The key level to monitor is 19215; a decline below this level would invalidate the current wave scenario.

Traders should remain bullish while prices stay above the invalidation level. The completion of wave 3 will lead to a corrective navy blue wave 4. Meanwhile, the impulsive movement offers possible entry points along the way.

The weekly timeframe adds significance to this trend, highlighting broader market support. The index appears to be in the early stages of a meaningful rally, backed by technical confirmation.

Hang Seng Index Elliott Wave technical analysis [Video]