HSBC (HSBA)

HSBC is the most globally exposed UK Bank, with a focus on its home territory of Asia. The bank has a range of operations, including retail and investment banking divisions as well as a major foreign exchange department. Although the bank is headquartered in London, it has locations on every continent, which means it will be influenced by events across the world. Will this help it to benefit from global growth in 2017?

HSBC shares traded a 9-year high in January as hawkish central banks, US tax reform and hopes of increased global growth were met with investor enthusiasm. While shares retreated by up to 9.4% from those January highs to lows of 724p, HSBC shares remain in a steady uptrend since mid-2016.

Can HSBC produce positive results to return to 2018 highs or will it be another poorly-received release?

Will HSBC better 2018 highs of 800p (+5.4%)  or retreat to 2017 lows of 620p (-18%)?

• Shares have retreated from 2018 highs, however have met 18-month rising lows support
• RSI has bullishly crossed 50, while Stochastics have turned back from oversold
• Momentum has turned positive after recovering from its lowest level in two years
• Brokers are positively skewed, with 56% of brokers holding a 12-month target above current level

Broker Consensus: 34% Buy, 57% Hold, 9% Sell

Bullish: Jefferies, Buy, Target 920p, +21% (15 Jan 18)

Average Target: 758p, -0.1% (15 Feb 18)

Bearish: AlphaValue, Sell, Target 641p, -16% (8 Feb 18)

Pricing data sourced from Bloomberg on 15 February. Please contact us for a full, up to date rundown.