HSI closes within previous day's range
Hong Kong Hang Seng Index (HSI) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
HSI ended Thursday at 23352.34 edging lower $174.85 (-0.74%). 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 Mar 26, 2020):
Thursday's trading range has been $441.16 (1.87%), that's slightly below the last trading month's daily average range of $599.46. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for HSI.
Two candlestick patterns are matching today's price action, the Black Candle and the Dark Cloud Cover which are both known as bearish patterns. The last time a Black Candle showed up on March 18th, HSI lost -2.61% on the following trading day.
Prices are trading close to the key technical support level at 22805.07 (S1). After having been unable to move lower than 23062.23 in the prior session, the market found buyers again around the same price level today at 23163.67.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Dark Cloud Cover" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Hang Seng. Out of 16 times, HSI closed higher 62.50% 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 four trading days, showing a win rate of 62.50% with an average market move of -0.03%.
With five out of the other six Major World Indices closing higher today, the ones that stand out on the positive side are DJIA gaining 6.38% and SPX closing 6.24% higher. On the flipside the worst performer has been NKY closing -4.51% lower. Read more