HSI breaks key support level

Hong Kong Hang Seng Index (HSI) Technical Analysis Report for Apr 16, 2018

Highlights

HSI breaks key support level
HSI dominated by bears dragging the market lower throughout the day
HSI breaks below 100-day moving average
HSI closes lower for the 3rd day in a row
HSI ends the day on a bearish note closing near the low of the day

TQ Sentiment

Report Sentiment: 71% Bearish
Technical Forecast:

Overview

Moving lower for the 3rd day in a row, HSI ended Monday at 30315.59 losing HK$492.79 (-1.6%). Today's closing price of 30315.59 marks the lowest close since April 9th. The bears were in full control today, moving the market lower throughout the whole session. Closing below Friday's low at 30707.77, HSI Index confirms its breakout through the prior session's low having traded HK$517.02 below it intraday. Ending with a weak close near the low of the day sets a bearish note for the next session.

Daily chart for HSI

Volatility

Monday's trading range was HK$658.97 (2.14%), that's far above last trading month's daily average range of HK$486.28. Things look different on a weekly scale, where volatility is below the markets average with the monthly volatility being slightly above average.

Support/Resistance

Breaking below the key support level at 30637.14 today, it is now likely to act as resistance going forward.

Trend

The stock index shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish. Hang Seng Index broke below the 100-day moving average at 30580.89 today for the first time since March 28th.

Order Flow

As prices are trading close to April's low at 29518.69, downside momentum could speed up should the market mark new lows for the month.

Conclusion

While classical technical analysis indicates a bearish sentiment for the next trading day, our quantitative statistics show a different picture being bullish.

Market Conditions for Hong Kong Hang Seng Index

Condition Forecast Direction Win Rate Exit Day Events
Close near high of period TQ Pro Members Only
Bullish Outside Bar TQ Pro Members Only
Closed above last periods high TQ Pro Members Only
Close to Swing High TQ Pro Members Only
Bullish Engulfing Candle TQ Pro Members Only
More market conditions identified for TQ Pro members...
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