HSI pushes through Thursday's high
Hong Kong Hang Seng Index (HSI) Technical Analysis Report for Mar 15, 2019 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, HSI finished the week 2.78% higher at 29012.26 after gaining $160.87 (0.56%) today. Closing above Thursday's high at 28932.47, the market confirmed its breakout through the previous session high after trading up to $272.26 above it intraday.
Daily Candlestick Chart (HSI as at Mar 15, 2019):
Friday's trading range has been $376.47 (1.31%), that's far above the last trading month's daily average range of $287.53. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for HSI.
One bearish candlestick pattern matches today's price action, the Last Engulfing Top Pattern.
Buyers managed to take out the key technical resistance level at 28941.09 (now S1), which is likely to act as support going forward. The last time this happened on February 21st, HSI gained 0.65% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling could speed up should prices move below the close-by swing low at 28690.37 where further sell stops might get activated. With prices trading close to this year's high at 29241.80, upside momentum could accelerate should the stock index be able to break out to new highs for the year.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) above 80" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Hang Seng. Out of 294 times, HSI closed higher 52.38% 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 56.80% with an average market move of 0.43%.
With six out of the other six Major World Indices closing higher today, the ones that stand out on the positive side are NDX gaining 0.88% and DAX closing 0.85% higher. None of the markets ended the day in the red. Read more