HSI plummets, losing $384.78 (-1.56%) within a single day

Hong Kong Hang Seng Index (HSI) Technical Analysis Report for Sep 17, 2020 | by Techniquant Editorial Team


HSI crashes, losing $384.78 (-1.56%) within a single day
HSI breaks back below 100-day moving average
HSI dominated by bears dragging the market lower throughout the day
HSI closes lower for the 2nd day in a row
HSI breaks below Wednesday's low


Moving lower for the 2nd day in a row, HSI ended Thursday at 24340.85 tanking $384.78 (-1.56%). This is the biggest single-day loss in over four weeks. The bears were in full control today, moving the market lower throughout the whole session. Closing below Wednesday's low at 24635.24, Hang Seng confirmed its breakout through the previous session low after trading up to $384.34 below it intraday.

Daily Candlestick Chart (HSI as at Sep 17, 2020):

Daily technical analysis candlestick chart for Hong Kong Hang Seng Index (HSI) as at Sep 17, 2020

Thursday's trading range has been $462.89 (1.88%), that's far above the last trading month's daily average range of $328.67. Things look different on the weekly timeframe, where the market's trading range of the last week has been below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for HSI.

One bearish candlestick pattern matches today's price action, the Black Candle.

Prices are trading close to the key technical support level at 24167.79 (S1). The stock index closed back below the 100-day moving average at 24683.98. When this moving average was crossed below the last time on September 7th, HSI actually gained 0.14% on the following trading day.

Although still in a long-term uptrend, the short and medium-term trends both turned bearish already.

Further selling could move prices lower should the market test August's close-by low at 24167.79.

Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) below 20" stand out. Its common bullish interpretation has been confirmed for Hang Seng. Out of 260 times, HSI closed higher 50.38% 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 59.62% with an average market move of 0.52%.

With six out of the other six Major World Indices closing lower today, the ones that stand out on the negative side are NDX losing -1.48% and SPX closing -0.84% lower. None of the markets managed to end the day in the green. Read more

Market Conditions for HSI as at Sep 17, 2020

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