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The HUI's Head and Shoulders
Previous chart:
(click on chart for full view)
The call for a higher move to 560 to 585 was correct, however, the expectation was for the 560 to 585 target window to be entered with a slow choppy rise for several weeks, depicting a corrective attitude. Instead, the strong move off the neckline, with impulsive attitude, back above the lower white trend-line suggests a potential change in my outlook.
The impulsive attitude may have created a Point of Recognition (PoR) when moving back above the lower white trend-line. So far only 3 waves up are realized, but a small period of consolidation between the orange trend-line (current resistance) and the previous white trend-line (blue projection) may allow for another thrust higher to test the previous highs above 610. Such a move would kill the bearish Head and shoulder pattern and bearish multi-year ending diagonal. That is much to ask from one small wave, we'll see what can be accomplished in the few days ahead.
The red projection and right shoulder scenario should see HUI rejected quickly off the orange trend-line as a second back-test. Then fall sharply down to the neckline or lower.
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