HSI tumbles, loses $926.70 (-3.54%) within a single day
Hong Kong Hang Seng Index (HSI) Technical Analysis Report for Oct 11, 2018 | by Techniquant Editorial Team
HSI ended Thursday at 25266.37 tanking $926.70 (-3.54%). This is the biggest single-day loss in over eight months. Today's close at 25266.37 marks the lowest recorded closing price since May 19, 2017.
Daily Candlestick Chart (HSI as at Oct 11, 2018):
Thursday's trading range was $312.63 (1.23%), that's below last trading month's daily average range of $372.71. Things look different on a weekly scale, where volatility is way above the markets average with the monthly volatility being above average.
Crossing below the lower Bollinger Band for the first time since September 10th, prices have reached an unusually low price in the short-term. This might either indicate a potential turning point back up towards the mean of the Bollinger Bands at 26978.58 or signal a strong momentum breakout leading to even lower prices. The last time this happened on September 10th, HSI lost -0.72% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the seven market conditions that our engine recognized today, the statistics for the Technical Indicators based condition "RSI(14) below 30" stands out. Although it is usually interpreted being bullish, it has actually shown to be bearish so far in the past for Hang Seng. Out of 28 times during the last ten years, HSI closed lower 67.86% of the time on the next trading day. The optimal exit for swing trading this condition on the short side has been after nine trading days, showing a win rate of 50.00% with an average market move of -0.12%.
With six out of the other six Major World Indices closing lower today, the ones that stand out on the negative side are NKY losing -3.89% and DJIA closing -2.13% lower. None of the markets managed to end the day in the green. Read more