Will HSBC turn, or will it continue to rise towards 734p?

• Testing resistance at 684p (at time of writing).
• Could they breakout to prior highs of 734p?
• Shares -0.6% from 2019 highs; +12.3% from 2019 lows; +5.7% year-to-date
• 3 May: Shareholder returns outlook bright after upbeat Q1, says Hargreaves
• 3 May: Q1 Revenue outperformance should boost stock says Jefferies
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

Trading HSBC – An Example

Let’s say the breakout appeals to you, you think it’s likely to continue towards 734p. You decide to buy exposure to £10,000 worth of HSBC using a CFD, at the current price of 684p. To do this, you need £2,000.

Let’s assume the HSBC trend continues to highs of 734p (+7.3%). Your profit would be £730, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 3% from the current price. HSBC breaks lower, falling 3% and it hits your stop-loss. Your loss would be £300.

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