Will HSBC break support, or will it rise back to 654p?

• 630p support since early Dec; bounced 4 times to trade 639p (at time of writing)
• Will the pattern repeat itself, rising back to 654p?
• Shares -20.0% from 2018 highs; +7.1% from 2018 lows; -1.7% year-to-date.
• 4 Feb: HSBC and Goldman Sachs back UK open-banking startup Bud
• 14 Jan: HSBC settled $250bn of FX trades with Blockchain in last year; Reuters
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading HSBC – An Example

Let’s say you like the HSBC range, you think it’s heading back up to 654p again. You decide to buy exposure to £10,000 worth of HSBC using a CFD, at the current price of 639p. To do this, you need £2,000.

Let’s assume HSBC rises back to 654p (+2.3%). Your profit would be £230, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 2% from the current price. HSBC falls 2% and hits your stop-loss. Your loss would be £200.

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