HSBC (0005-HK) Remains Heavy

Share Price is yet to fill back the huge Bearish Gap marked on April 1....

Downtrend 3

HSBC Holdings (0005-HK), a global banking group, reported that first-quarter profit before tax plunged 48% on year to $3.23 billion, blaming "higher expected credit losses and other credit impairment charges and lower revenue" due to the Covid-19 outbreak and weakening oil prices.

Estimated credit losses (ECL) of $3.0 billion was $2.4 billion higher than in the same period last year.

Looking into 2020, the Bank stated: "The impact and duration of the Covid-19 crisis will likely lead to higher ECL and put pressure on revenue due to lower customer activity levels and reduced global interest rates. (...) These factors are expected to lead to materially lower profitability in 2020, relative to 2019."

A review of its dividend policy will be made at or ahead of the release of full-year 2020 results, the Bank said.

The stock's Daily Chart does not look good, either.


Source: GAIN Capital, TradingView


Share Price is yet to fill back the huge Bearish Gap marked on April 1. And now the level of HK$43.95 (at the opening of the gap) is holding as the Key Resistance.

Being capped by the descending 20-day moving average, Share Price would seek Immediate Support at HK$37.60 (around its recent low).


Below HK$37.60, support would only be located at HK$34.50.

More from Equities

Related Articles

Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.