HSI dominated by bears dragging the market lower throughout the day
Hong Kong Hang Seng Index (HSI) Technical Analysis Report for Jan 14, 2020 | by Techniquant Editorial Team
HSI finished Tuesday at 28885.14 losing $69.80 (-0.24%). The bears were in full control today, moving the market lower throughout the whole session. 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 Jan 14, 2020):
Tuesday's trading range has been $359.04 (1.23%), that's far above the last trading month's daily average range of $257.56. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for HSI.
Two candlestick patterns are matching today's price action, the Bearish Belt-hold and the Black Candle which are both known as bearish patterns. The last time a Black Candle showed up on January 3rd, HSI lost -0.79% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Decisive Down Move" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Hang Seng. Out of 385 times, HSI closed higher 50.39% 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 56.10% with an average market move of 0.29%.
With four out of the other six Major World Indices closing higher today, the ones that stand out on the positive side are NKY gaining 0.73% and DJIA closing 0.11% higher. On the flipside the worst performers have been NDX closing -0.41% lower and SPX losing -0.15%. Read more