HSBC: Technical rebound in a bearish trend
Nicolas Suiffet October 27, 2020 5:06 AM
HSBC, the global banking group, announced that 3Q adjusted profit before tax declined 20.6% on year to 4.30 billion dollars on adjusted revenue of 12.07 billion dollars, down 9.6%.
HSBC, the global banking group, announced that 3Q adjusted profit before tax declined 20.6% on year to 4.30 billion dollars on adjusted revenue of 12.07 billion dollars, down 9.6%. 3Q profits beat market expectations. Adjusted expected credit losses reduced to 785 million dollars from 3.95 billion dollars in the prior quarter and 843 million dollars in the prior-year period. The bank said it will consider paying a "conservative dividend" for 2020, which "would be dependent on the economic outlook in early 2021, and be subject to regulatory consultation".
From a chartist point of view, the stock price has landed on a massive support zone near 2009 low and is posting a rebound. The daily Relative Strength Index (RSI, 14) validated a bullish divergence calling for a technical rebound within the bearish trend. In addition, prices escaped from a downward-sloping channel. Readers may want to consider the potential for opening Long positions above the support at 306p with 370p and 392p as targets. A break below 306p would negate the bullish view and would call for the resumption of the medium term down trend.
Source: GAIN Capital, TradingView
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.