After making a five wave advance off the crash lows, $HSBC has entered a summer’s-long correction that has taken it into the range expected for a two of primary degree. The reaction to the multi-year trend line was to be expected. It has fallen in three waves, so it may already be complete. It has the right “look” in terms of both time and price. I have noted the target for primary 3 in the orange box above us.
I will update it with shorter-term targets once the first wave of at least minor degree has completed.