HSI breaks back above 100-day moving average
Hong Kong Hang Seng Index (HSI) Technical Analysis Report for May 15, 2019 | by Techniquant Editorial Team
HSI ended Wednesday at 28268.71 gaining $146.69 (0.52%). Closing above Tuesday's high at 28205.96, the index confirmed its breakout through the prior session high after trading up to $235.53 above it intraday.
Daily Candlestick Chart (HSI as at May 15, 2019):
Wednesday's trading range has been $270.17 (0.96%), that's below the last trading month's daily average range of $342.03. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for HSI.
Hang Seng managed to close back above the 100-day moving average at 28162.67.
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and might now be heading back up towards the mean of the Bollinger Bands at 29465.40. The last time this happened on May 7th, HSI actually lost -1.23% on the following trading day.
Although still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Selling could accelerate should prices move below the nearby swing low at 27925.62 where further sell stops might get activated.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close crossed above the lower Bollinger Band" stand out. Its common bullish interpretation has been confirmed for Hang Seng. Out of 80 times, HSI closed higher 51.25% 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 63.75% with an average market move of 1.26%.
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 1.37% and DAX closing 0.9% higher. None of the markets ended the day in the red. Read more