HSI breaks above 50-day moving average for the first time since July 30th


Hong Kong Hang Seng Index (HSI) Technical Analysis Report for Sep 11, 2019 | by Techniquant Editorial Team

Highlights

HSI breaks above 50-day moving average for the first time since July 30th
HSI rises to highest close since August 1st
HSI dominated by bulls lifting the market higher throughout the day
HSI closes higher for the 2nd day in a row
HSI pushes through Tuesday's high

Overview

Moving higher for the 2nd day in a row, HSI ended Wednesday at 27159.06 surging $475.38 (1.78%). Today's close at 27159.06 marks the highest recorded closing price since August 1st. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Tuesday's high at 26870.77, Hang Seng confirmed its breakout through the previous session high after trading up to $288.74 above it intraday.

Daily Candlestick Chart (HSI as at Sep 11, 2019):

Daily technical analysis candlestick chart for Hong Kong Hang Seng Index (HSI) as at Sep 11, 2019

Wednesday's trading range has been $453.88 (1.69%), that's slightly above the last trading month's daily average range of $356.71. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for HSI.

One bullish candlestick pattern matches today's price action, the White Candle.

The index managed to close above the 50-day moving average at 27032.61 for the first time since July 30th. When this moving average was crossed above the last time on July 10th, HSI gained 0.81% on the following trading day. Prices are trading close to the key technical resistance level at 27201.02 (R1).

Crossing above the upper Bollinger Band for the first time since September 4th, prices have shown unusually strong upward momentum in the short-term. This might either indicate a potential buying climax after which prices could head back down towards the mean of the Bollinger Bands at 26102.37 or signal the beginning of a strong momentum breakout leading to even higher prices.

While the market is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.

Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close above the upper Bollinger Band" stand out. Its common bullish interpretation has been confirmed for Hang Seng. Out of 120 times, HSI closed higher 55.00% 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 59.17% with an average market move of 0.31%.

With six out of the other six Major World Indices closing higher today, the ones that stand out on the positive side are FTSE gaining 0.96% and NKY closing 0.96% higher. None of the markets ended the day in the red. Read more


Market Conditions for HSI as at Sep 11, 2019

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