Standard Chartered (2888.HK) Bounces 6%...But Key Resistance Remains at HK$46.50

A Bearish Gap marked on March 13 has not yet been filled back...

Downtrend 2

Standard Chartered (2888.HK) reported that first-quarter underlying profit before tax slid 12% on year to $1.2 billion.

Credit Impairment surged to $956 million (from $78 million in the prior-year period), driven by the economic impact of the rapid spread of the coronavirus.

Return on tangible equity dropped 100 basis points to 8.6%.

Meanwhile, the Bank offered an optimistic outlook, saying: "We expect a gradual recovery from the COVID-19 pandemic, (...) before the global economy moves out of recession in the latter part of 2020, most likely led and driven by markets in our footprint."

On a Daily Chart, the Stock closed today (April 29) 6.2% higher at HK$39.60, around the descending 20-day moving average.


Source: GAIN Capital, TradingView


However, it is struggling to pull away from a recent closing low of HK$36.70.

A Bearish Gap marked on March 13 has not yet been filled back. 

The Key Resistance remains at HK$46.50, which is the opening of the Bearish Gap mentioned above. It is also around the descending 50-day moving average.

Unless this Key Resistance is surpassed, the Technical Configuration remains a bearish one.

A pull-back to HK$36.70 (recent closing low) would expose the next support level at HK$32.00.

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.