HSI closes within previous day's range

Hong Kong Hang Seng Index (HSI) Technical Analysis Report for Oct 10, 2019 | by Techniquant Editorial Team


HSI closes above its opening price after recovering from early selling pressure
HSI unable to break through key resistance level
HSI closes within previous day's range


HSI ended Thursday at 25707.93 edging higher $25.12 (0.1%). Trading up to $103.62 lower after the open, Hang Seng managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.

Daily Candlestick Chart (HSI as at Oct 10, 2019):

Daily technical analysis candlestick chart for Hong Kong Hang Seng Index (HSI) as at Oct 10, 2019

Thursday's trading range has been $287.63 (1.12%), that's slightly below the last trading month's daily average range of $298.99. Weekly volatility is also lower, being slightly 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 Bullish Spinning Top.

Unable to break through the key technical resistance level at 25778.22 (R1), the stock index closed below it after spiking up to 25809.58 earlier during the day. The failure to close above the resistance might increase that levels significance going forward. When prices bounced off a significant resistance level the last time on September 24th, HSI lost -1.28% on the following trading day.

The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.

Further selling could move prices lower should the market test September's nearby low at 25498.11.

Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Spinning Top" stand out. Its common bullish interpretation has been confirmed for Hang Seng. Out of 194 times, HSI closed higher 54.64% 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 eight trading days, showing a win rate of 55.15% with an average market move of 0.10%.

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 0.65% and SPX closing 0.64% higher. None of the markets ended the day in the red. Read more

Market Conditions for HSI as at Oct 10, 2019

Loading Market Conditions for HSI (Hong Kong Hang Seng Index)...
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