#France #Nasdaq HSBC, UK based, do not appear to be missing many own goals at present. Their stance on China interference in Hong Kong, criticised by both UK and US governments was trumped, when they announced 35,000 job cuts as a “thank you” for staff efforts during lockdown. We can only wonder if they intend make negative comment on BLM, a statue somewhere, or the (often silly) debate over the number of biological genders.
However, thus far it appears their share price has not succumbed to temptation and flung itself into the sea. Perhaps the real problem lies below 358p, the immediate drop target. According to our calculations, 358p is liable to prove extremely problematic for the price as movement below risks triggering reversal to an initial 302p. Visually, this is extremely dangerous as it takes the price below the level of the financial crash in 2009, opening the doors for 165p to make an appearance as “ultimate” bottom.
Of course, Ultimate Bottom provides no certainty a share price will rebound. It’s one of these numbers we simply cannot presently calculate anything below!
Perhaps it’s the case the recent lows of 370p are deemed “close enough” to 358p by a market which perceives some strength in HSBC. If this is indeed the case, the share price needs exceed 394p (at time of writing, it’s 382p) as this calculates with an ambition of 410p. In the event this initial target level is exceeded, the price ticks the first box for bottom being “in” and allows a secondary calculation up at 436p.
For now, we suspect HSBC shall doubtless find an excuse to explore 358p and hopefully the market appreciates the price is staring into an abyss, thus forcing a strong recovery.
|Time Issued||Market||Price At Issue||Short Entry||Fast Exit||Slow Exit||Stop||Long Entry||Fast Exit||Slow Exit||Stop||Prior|
17/06/2020 FTSE Closed at 6253 points. Change of 0.18%. Total value traded through LSE was: £ 5,840,674,157 a change of -3.28%
16/06/2020 FTSE Closed at 6242 points. Change of 2.94%. Total value traded through LSE was: £ 6,038,997,708 a change of 21.55%
15/06/2020 FTSE Closed at 6064 points. Change of -0.67%. Total value traded through LSE was: £ 4,968,429,954 a change of -16.12%
12/06/2020 FTSE Closed at 6105 points. Change of 0.48%. Total value traded through LSE was: £ 5,923,571,843 a change of -4.84%
11/06/2020 FTSE Closed at 6076 points. Change of -4%. Total value traded through LSE was: £ 6,224,767,909 a change of 0.67%
10/06/2020 FTSE Closed at 6329 points. Change of -0.14%. Total value traded through LSE was: £ 6,183,586,009 a change of -20.17%
9/06/2020 FTSE Closed at 6338 points. Change of -2.07%. Total value traded through LSE was: £ 7,746,073,267 a change of -2.7%