HSBC (5-hk): The worst is yet to come
George Lam September 21, 2020 3:54 AM
HSBC (5-hk), a multinational banking group, has been one of the worst performing constituent of the Hong Kong’s Hang Seng Index...
HSBC (5-hk), a multinational banking group, has been one of the worst performing constituent of the Hong Kong’s Hang Seng Index, which has dropped for a third straight week.
While HSBC was hit by disappointing earnings results released in early August, Chinese media Global Times reported that the bank may be listed in Chinese government's Unreliable Entity List, aimed at foreign entities that engage in actions that endanger the country's national sovereignty, according to Chinese media Global Times. Its share price slumped to the lowest level since 1995 during early trading hours today.
On a daily chart, HSBC’s (5-hk) decline shows no signs of stabilizing. It has broken below its previous low marked in August, without showing a bullish RSI divergence. The level at $32.75 may be considered as the nearest resistance, with prices likely to test the 1st and 2nd support at $28.00 and $25.55 respectively. Alternatively, a break above $32.75 might trigger a further rebound to test the next resistance at $35.00.
Disclaimer: GAIN Capital UK Limited (trading as "Forex.com") is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, Forex.com does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by Forex.com or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although Forex.com is not specifically prevented from dealing before providing this material, Forex.com does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
For further details see our full non-independent research disclaimer and quarterly summary.