HSBA trade ideas
Position before next BreakOut **Dividend**Fundamentally HSBC is confident that their internal investment of process amelioration was a success which wil make the company a lot more efficient with regards to future challanges coming due to the automation revolution.
Investors seem to believe and started buying the stock back. HSBC was always paying a nice dividend and so are they this year.
Conservative investors may wait until trend confirmation a new breakout. More aggressive may buy 1/2 now, TP on the BO. Buy back into 1/2 at BO level and buy another half in the support.
Strategy:
Better than 50/50 chance on capital gain for mid-term
Dividend payment
Potential Options hedges to increase your income on this opportunity
HSBA – Bearish divergence intactThe daily RSI is in a falling channel even though the prices are moving higher, suggesting a bearish price RSI divergence and a potential for a correction.
However, the stock found buyers at the session low of 629.60. Nevertheless, a potential for a sell-off remains intact till the stock does not close above 645 levels.
On the lower side, major support is seen around 600 levels.
HSBC Holdings - Time for a healthy correctionRight hand side - Daily chart
Left hand side- Weekly chart
The bearish divergence is quite clear. The price is sliding higher against the trend line, while the RSI is moving in a downward channel. Unless, the RSI breaks higher, there is little reason to believe the stock could rise further.
Over here, the RSI is sowing a bearish divergence...while the MACD is showing the loss of bullish momentum.
Overall, it appears the stock is poised for a much needed healthy correction to 600-580 levels.
HSBC (HSBA LN) earnings MondayThe banking sector has been hit by Trumps latest resurgence in the polls, but the UK banks received a slight boost after a UK court ruled that MP's will have a say on when and how article 50 will be invoked, increasing hopes of a soft Brexit.
The weekly chart has printed a bearish candle signal but on the daily chart prices look overstretched. on the D1 chart the RSI indicator is making lower lows while price is making higher lows (Divergence). Currently is right in the middle of value which indicates if earnings come out of line we could see a move into a new distribution.
The weekly downtrendline has been broken but since price has moved back in but on lower volume. On the lower timeframes we are in a uptrend, but the recent retracement looks strong but overdone.
R3 660.00
R2 Weekly downtrend line
R1 Daily downtrend line
Current 592.80
S1 590.20
S2 558.00
S3 541.86
S4 489.52
HSBC TO FILE BANKRUPTCY BY 2022FORM 2007 THE BANK SHARE PRICE IS GOING DOWN. Even though as per economist claiming US and global market has strong outlook but the HSBC bank didn't bounce anywhere near there. They may do some reverse split or government bailout (if any) but over the long run the stock price is saying that it will be ready to file bankruptcy by 2022 and onwards. The only hope investors for now has is that as long as it holds above $28-$25 it will act as a resistance line (BLAKC LINE). But then after that it will be a free fall. to near zero. Trading price in last days may be between $.30--$.80 cents on the dollar. Now as it is hitting the red RESISTANCE LINE SO GOOD TIME GO SHORT. Stock short ban may come into play in future but then you can do it by options too for now till they ban the options too :)
HSBC WILL FILE FOR BANKRUPTCY SOONFrom 2007 the bank has been always in downtrend. With all those fines from different countries and the bad mortgage loans, HSBC is not able to come back up yet. Yes HSBC may do some reverse stock split like CITI GROUP did around 2008-9 but it didn't help them much to boost up the share prices.
