HSI runs into sellers again around 24598.61
Hong Kong Hang Seng Index (HSI) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
HSI finished the month 6.38% higher at 24427.19 after gaining $125.91 (0.52%) today. Trading $130.37 higher after the open, Hang Seng was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on June 22nd, HSI actually gained 1.62% on the following trading day. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (HSI as at Jun 30, 2020):
Tuesday's trading range has been $326.84 (1.34%), that's slightly below the last trading month's daily average range of $383.05. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently 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.
Prices are trading close to the key technical support level at 24204.10 (S1). After having been unable to move above 24627.64 in the prior session, the market ran into sellers again around the same price level today, missing to move higher than 24598.61.
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Selling might speed up should prices move below the close-by swing low at 24148.62 where further sell stops could get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Spinning Top" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Hang Seng. Out of 194 times, HSI closed higher 56.19% 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 52.58% with an average market move of 0.07%.
With five out of the other six Major World Indices closing higher today, the ones that stand out on the positive side are NDX gaining 1.96% and SPX closing 1.54% higher. On the flipside the worst performer has been FTSE closing -0.9% lower. Read more