HSBC
A trading opportunity for you?
Will HSBC break support, or will it rise again to 685p?
- Shallow Oct rising support at 631p to trade 633p (at time of writing).
- Will the pattern repeat, the shares climbing back towards 685p?
- Shares -14% from 2019 highs; +2.1% from 2019 lows; -2.1% year-to-date.
- 19 Feb: Interactive says HSBC faces sort term challenges, but LT looks brighter
- Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal
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 633p. To do this, you need £2,000.
Let’s assume HSBC rises back to 685p highs (+8.2%). Your profit would be £820, 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.