Hang Seng May Be Offering a Trading Opportunity With Its Cross Below Its 200 Moving Average

The Hourly View for Hang Seng

  • Currently, HSI’s price is down -18.99 (-0.07%) from the hour prior.
  • It’s been a feast for bears operating on an hourly timeframe, as Hang Seng has now gone down 4 of the past 5 hours.
  • If you’re a trend trader, consider that the strongest clear trend on the hourly chart exists on the 20 hour timeframe.
  • Price action traders may also wish to note that we see a pin bar candlestick pattern on Hang Seng. Given that we see an uptrend on the 20 hourly candle timeframe, and that such candlestick patterns often denote reversals, this may be worth noting. With that said, traders should also note the downtrend on the 20 hourly candle timeframe, so the meaning of the candles may require further exploration.
  • The moving averages on the hourly timeframe suggest a bearishness in price, as the 20, 50, 100 and 200 are all in a bearish alignment — meaning the shorter duration moving averages are below the longer duration averages, implying a stable downward trend.

Hang Seng’s hourly price chart is shown below.

HSI

The Daily View for Hang Seng

  • At the time of this writing, HSI’s price is up 448.17 (1.63%) from the day prior.
  • The daily chart shows that Hang Seng has seen 3 straight up days.
  • As for the trend on the daily timeframe, we see the clearest trend on the 20 day timeframe.
  • Regarding moving averages, it should first be noted that price has crossed the 200 day moving average, resulting in them with price now being above it. The moving averages on the daily timeframe suggest a choppiness in price, as the 20, 50, 100 and 200 are all in a mixed alignment — meaning the trend across timeframes is inconsistent, indicating a potential opportunity for rangebound traders.

Below is a daily price chart of Hang Seng.

HSI