HSI dominated by bulls lifting the market higher throughout the day
Hong Kong Hang Seng Index (HSI) Technical Analysis Report for Feb 11, 2019 | by Techniquant Editorial Team
HSI finished Monday at 28143.84 gaining $197.52 (0.71%). Today's close at 28143.84 marks the highest recorded closing price since August 30, 2018. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Friday's high at 28008.82, the index confirmed its breakout through the previous session high after trading up to $135.02 above it intraday.
Daily Candlestick Chart (HSI as at Feb 11, 2019):
Monday's trading range has been $295.99 (1.06%), that's slightly below the last trading month's daily average range of $302.84. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for HSI.
One bullish candlestick pattern matches today's price action, the White Candle. The last time a White Candle showed up on February 8th, HSI gained 0.71% on the following trading day.
Prices are trading close to the key technical resistance level at 28193.28 (R1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might speed up should prices move above the close-by swing high at 28193.28 where further buy stops could get triggered. With prices trading close to this year's high at 28193.28, upside momentum might accelerate should Hang Seng be able to break out to new highs for the year.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(14) above 70" stand out. Its common bearish interpretation has been confirmed for Hang Seng. Out of 43 times, HSI closed lower 55.81% of the time on the next trading day after the market condition occurred.
With three out of the other five Major World Indices closing higher today, the ones that stand out on the positive side are DAX gaining 0.99% and FTSE closing 0.82% higher. On the flipside the worst performers have been DJIA closing -0.21% lower and NDX losing -0.06%. Read more