HSBC Testing the top of a bearish channel
FOREX.com October 4, 2020 10:27 PM
HSBC (5-hk) is extending last week's rebound, however its technical outlook remains bearish...
During early Asian trading hours Monday, HSBC (5-hk) jumped by more than 6.0%, following a 5.7% rebound last week. Previously, Chinese insurance giant Ping An Insurance said its asset management arm has raised its stake in HSBC to 8.00% from 7.95%, reiterating its confidence and pointing out that dividend suspension by the bank should be a temporary issue.
On a daily chart, HSBC (5-hk) has reached the 1st support of our previous forecast before the recent rebound, but remains on the downside as it has yet to break above the bearish channel. The level at $32.75 still holds as the nearest resistance, while a break below the nearest support at $28.00 would open a path to the next support at $25.55. Alternatively, a breakthrough above $32.75 would suggest that the next resistance at $35.00 is likely to be challenged.
Source: Gain Capital, TradingView
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