Will HSBC break support, or will it rise back to 685p?

• Shallow rising support at 631p
• Bounced 6 times to trade 644p (at time of writing)
• Will the pattern repeat itself, rising back to 685p?
• Shares -4.9% from 2019 highs; +1.1% from 2019 lows; -0.3% year-to-date.
• 19 Feb: Interactive says HSBC faces sort term challenges, but LT looks brighter
• 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 685p again. You decide to buy exposure to £10,000 worth of HSBC using a CFD, at the current price of 644p. To do this, you need £2,000.

Let’s assume HSBC rises back to 685p (+6.3%). Your profit would be £630, 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 falls 3% and hits your stop-loss. Your loss would be £300.

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