HSBC (5-hk): Testing the top of a bearish channel
George Lam October 5, 2020 1:27 PM
HSBC (5-hk) is extending last week's rebound, however its technical outlook remains bearish...
During early Asian trading hours Monday, HSBC (5-hk) jumped by more than 6.0%, following a 5.7% rebound last week. Previously, Chinese insurance giant Ping An Insurance said its asset management arm has raised its stake in HSBC to 8.00% from 7.95%, reiterating its confidence and pointing out that dividend suspension by the bank should be a temporary issue.
On a daily chart, HSBC (5-hk) has reached the 1st support of our previous forecast before the recent rebound, but remains on the downside as it has yet to break above the bearish channel. The level at $32.75 still holds as the nearest resistance, while a break below the nearest support at $28.00 would open a path to the next support at $25.55. Alternatively, a breakthrough above $32.75 would suggest that the next resistance at $35.00 is likely to be challenged.
From time to time, GAIN Capital Australia Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.
As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.