Will HSBC break resistance, or will it fall back to 630p?

• 630-669p range since November; Now trades 664p (at time of writing)
• Will the pattern repeat itself, testing the 630p floor?
• Shares -0.9% from 2019 highs; +9% from 2019 lows; +2.6% year-to-date.
• 12 Apr: HSBC Board Wins $590 Mln Battle Over Pension Deductions.
• HSBC reports Q1 results on Friday, 3 May
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Click to enlarge

Trading HSBC – An Example

Let’s say you like the range, you think it’s heading back towards 630p again. You decide to sell exposure to £10,000 worth of HSBC using a CFD, at the current price of 664p. To do this, you need £2,000.

Let’s assume HSBC falls to 630p (-5%). Your profit would be £500, 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 rises 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.