HBC1 trade ideas
HSBA trending downwards, currently holding supportJust throwing some lines on HSBC (HSBA) .
We have a broadening channel, higher highs and lower lows on a 20 year timeframe.
Currently in a downward trend on the monthly, just about holding historical support.
This would probably be a good place to exit if we are expecting a market downturn.
"These formations are relatively rare during normal market conditions over the long-term" - Investopedia
HSBC Bullish For Stock Market ReboundHSBC is trading this month in congruence with the current global stock market pullback by offering a time-relative discount in share prices.
HSBC target $43 for a 5.4% difference from the current quote of $40.78. The S&P 500 is off 7.5% from doubly tested but not yet broken all time highs which renders this parallel HSBC trade idea as conservative and defensive. The duration for this trade is 1-3 months.
HSBC Approaching Support, Potential Bounce!HSBC is approaching its support at 40.33 (100% Fibonacci extension, 78.6% Fibonacci retracement, horizontal swing low support) where it could potentially bounce to its resistance at 41.19.
Stochastic (55, 5, 3) is approaching its support where a corresponding bounce could occur.
shorter term trade and possible longer term direction of stockShorter term, the black horizontal lines represent support and resistance. The strategy I would suggest is to wait to see if it rebounds off of the top black resistance line then drops to the below support line and trade if it continues to rise off of it.
Longer term the scallops drawn in green on the chart seem to suggest a newer downwards curve and its valleys also suggest a decreasing curve, therefore longer term I would predict the price is heading downwards. Although the current congestion may suggest a change in trend which may oppose relevance of the scallops.