Asia regional markets, like Hang Seng Index, has also broken its triangle consolidation and embarked on a new selling wave.

Triangles as identified by the Elliot principle tend to precede the final move, which in this case means a final sell-off to end the entire corrective structure since February.

If we use the guideline of wave equality (wave Z = wave W), this means we can potentially see the APEX50 land at around 1428ish area, meaning some 10% lower from today.

Still, it is a guideline and there is no guarantee markets will adhere to that. Hence ATEC will take it one day at a time.

Good Luck Out There.

First, the bad kind

With the break of the lower triangle line at around 24,800, we can now confirm that the Hang Seng Index has embarked on a new corrective wave down to potentially the 22K-ish area.

Again, it is being led by HSTECH, whose heavy ownership even now continues to surprise ATEC.

Secondly, the good kind of break

ATEC admits that Hang Seng continues to confuse and frustrate.

Post yesterday and depending on today’s price action, the potential for a previously bullish setup is now diminishing should more weakness prevail.

That this is likely stems from the continued weakness in the Chinese titans, with the likes of Baba…

Asia regional markets, as represented by our poster-child APEX50 has also bounced off its critical support as shown, negating an immediately bearish scenario.

This is a good sign, in that despite the seemingly lacklustre earnings season so far, the ‘bad news’ did nothing to depress prices further.

Even though we…

ATEC finds today’s price action on Hang Seng interesting.

After fading from late October till now, the index has found support on the green line as shown. Traditional technicians might identify that as potentially the right shoulder of an inverse ‘head and shoulders’ formation. For sure, we cannot conclude until we see follow-through price action over the next few days.

Having said that, the setup is coinciding with several pieces of news over the last few days which suggested that Beijing is finally taking concrete steps to ensure the battered property sector has access to the domestic debt markets.

ATEC read that several domestic securities journals have also made it a point to highlight the uptick in mortgage loans in the month of October. ATEC thinks this could represent the start of a shift in sentiment and we will pay attention.

Good Luck out there.

Post Japan’s general elections over the weekend, in which the LDP managed to secure a majority of the seats in the lower parliament house, the Nikkei starts off the week showing more life.

As mentioned before, if the index is able to show more momentum and take out its recent…

The HSCEI in recent days had corrected to a level that ATEC thinks is critical.

As mentioned before, this is the level that will suggest to ATEC whether the market had truly embarked on a recovery trend or has yet to complete its complex and messy corrective wave.

With the earnings reporting season in motion, there is understandably a lot of uncertainty over how the recent spate of inflationary pressures will manifest. ATEC supposes we cannot tell for sure if anything is ‘priced in’ until we see the reaction to the news.

For now, our technical approach is telling us to stay low until the price action becomes clearer.

Good luck out there.

Upside Technologies

Investing research and thoughts from an Upside user and Portfolio Manager named ATEC, based in Singapore. learn more at https://upsidetechnology.co/

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