Does this Upgrade present an opportunity for you?

Is it irrelevant, or will the Upgrade make the HSBC share price more attractive?

• The chart shows the HSBC share price since April 2015.
• Morningstar upgrades HSBC to Buy, adjusting the target price of 704p (from 707p).
• Consensus summary: 10 Buys, 10 Holds, 4 Sell; Average target: 763p (Source: Bloomberg).
• Current share price 605p (at time of writing).
• Will the shares turn back, or will the upgrade push the shares back towards 683p September highs?
• Shares -24% from 2018 highs; now trading at 2018 lows; -21.1% year-to date

Click to enlarge

Trading HSBC – An Example

Let’s say you think that HSBC shares have upside potential as result of this broker upgrade. You decide to buy exposure to £10,000 worth of HSBC using a CFD, at the current price of 605p. To do this, you need £2,000.

For the purpose of this example, let’s assume the HSBC share price rises to 683p (+12.9%). Your profit would be £1,290 from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 6% from the current price. HSBC shares continue their downtrend, they fall 6% and hit your stop-loss. Your loss would be £1,000.

This is provided for information purposes only. It should not be taken as a recommendation.