HSBC
A trading opportunity for you?
Will HSBC break support, or will it rise again back to 798p January highs?
- HSBC has bounced off December 2016 support zone around 620p
- Bounced 3 times, most recently yesterday.
- Now trading 623p (at time of writing).
- HSBC is set to release quarterly results at the end of the month.
- Net interest margins will be the focus, with rising interest rates around the world set to benefit big banks.
- Shares -22.6% from 2018 highs; now trading at 2018 lows; +18.9% year-to-date.
- Source: Bloomberg, FT, Reuters, DJ Newswires
Trading HSBC – An Example
Let’s say you like the HSBC range, you think it’s heading back towards 798p again. You decide to buy exposure to £10,000 worth of HSBC using a CFD, at the current price of 623p. To do this, you need £2,000.
Let’s assume HSBC rises back to 798p (+28%). Your profit would be £2,800, from your initial investment of £2,000.
Conversely, let’s assume you open the above position, and place a stop-loss at 10% from the current price. HSBC falls 10% and hits your stop-loss. Your loss would be £1,000.
This is provided for information purposes only. It should not be taken as a recommendation.