HSI closes above its opening price after recovering from early selling pressure
Hong Kong Hang Seng Index (HSI) Technical Analysis Report for Jul 17, 2019 | by Techniquant Editorial Team
HSI finished Wednesday at 28593.17 losing $26.45 (-0.09%). Trading up to $86.43 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (HSI as at Jul 17, 2019):
Wednesday's trading range has been $215.83 (0.76%), that's slightly below the last trading month's daily average range of $252.13. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly lower than usual for HSI.
One bullish candlestick pattern matches today's price action, the White Candle.
The stock index closed back below the 100-day moving average at 28602.36. When this moving average was crossed below the last time on July 8th, HSI lost -0.76% on the following trading day. After having been unable to move above 28634.65 in the prior session, Hang Seng ran into sellers again around the same price level today, missing to move higher than 28593.17.
Though still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Buying could speed up should prices move above the close-by swing high at 28634.65 where further buy stops might get triggered. As prices are trading close to July's high at 29007.98, upside momentum could accelerate should the index mark new highs for the month.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Break through SMA 100" stand out. Its common bearish interpretation has been confirmed for Hang Seng. Out of 64 times, HSI closed lower 57.81% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 50.00% with an average market move of -0.32%.
With six out of the other six Major World Indices closing lower today, the ones that stand out on the negative side are DAX losing -0.72% and SPX closing -0.65% lower. None of the markets managed to end the day in the green. Read more