Will HSBC break support, or will it rise again to 685p?

• Shallow rising support since late Oct.
• 3 bounces, most recently this week, to trade 639p (at time of writing).
• Will the pattern repeat, the shares climbing back towards 685p?
• Shares 3.8% from 2018 highs; +0.5% from 2018 lows; -1.19% year-to-date.
• 14 Jan: Reuters said HSBC settled $250bn of FX trades using blockchain last year.
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

Trading HSBC – An Example

Let’s say you like the HSBC chart and you think the price is heading back towards 685p again. You decide to buy exposure to £10,000 worth of HSBC using a CFD, at the current price of 639p. To do this, you need £2,000.

Let’s assume HSBC rises back to 685p Dec highs (+7.2%). Your profit would be £720, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 3% from the current price. HSBC falls 3% and hits your stop-loss. Your loss would be £300.

This is provided for information purposes only. It should not be taken as a recommendation.