HSI tanks, losing $663.30 (-2.47%) within a single day

Hong Kong Hang Seng Index (HSI) Technical Analysis Report for Dec 06, 2018 | by Techniquant Editorial Team


HSI crashes, losing $663.30 (-2.47%) within a single day
HSI breaks below 20-day moving average for the first time since November 1st
HSI finds support at 50-day moving average
HSI closes lower for the 2nd day in a row


Moving lower for the 2nd day in a row, HSI ended Thursday at 26156.38 tanking $663.30 (-2.47%). This is the biggest single-day loss in over a month.

Daily Candlestick Chart (HSI as at Dec 06, 2018):

Daily technical analysis candlestick chart for Hong Kong Hang Seng Index (HSI) as at Dec 06, 2018

Thursday's trading range has been $365.03 (1.39%), that's slightly above the last trading month's daily average range of $354.85. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for HSI.

One bearish candlestick pattern matches today's price action, the Black Candle.

After trading as low as 26016.09 during the day, the index found support at the 50-day moving average at 26086.68. The last time this happened on February 20th, HSI gained 1.81% on the following trading day. The market closed below the 20-day moving average at 26243.36 for the first time since November 1st.

Though the stock index is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.

Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Gap Down" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Hang Seng. Out of 236 times, HSI closed higher 51.69% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 56.78% with an average market move of 0.72%.

With five out of the other six Major World Indices closing lower today, the ones that stand out on the negative side are DAX losing -3.48% and FTSE closing -3.15% lower. On the flipside the best performer has been NDX closing 0.64% higher. Read more

Market Conditions for HSI as at Dec 06, 2018

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