HSI closes within previous day's range after lackluster session
Hong Kong Hang Seng Index (HSI) Technical Analysis Report for Dec 02, 2019 | by Techniquant Editorial Team
HSI finished Monday at 26444.72 gaining $98.23 (0.37%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (HSI as at Dec 02, 2019):
Monday's trading range has been $118.46 (0.45%), that's far below the last trading month's daily average range of $287.95. 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.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, two candlestick patterns are matching today's price action, the Homing Pigeon which is known as bullish pattern and one bearish pattern, the Bearish Spinning Top. The last time a Bearish Spinning Top showed up on October 22nd, HSI lost -0.82% on the following trading day.
Prices are trading close to the key technical support level at 26372.09 (S1).
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling could accelerate should prices move below the nearby swing low at 26308.10 where further sell stops might get activated. Further selling could move prices lower should the market test November's close-by low at 26203.97.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Spinning Top" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Hang Seng. Out of 195 times, HSI closed higher 54.36% of the time on the next trading day after the market condition occurred.
With five out of the other six Major World Indices closing lower today, the ones that stand out on the negative side are DAX losing -2.05% and NDX closing -1.12% lower. On the flipside the best performer has been NKY closing 1.01% higher. Read more