HSBC Holdings plc Stock Forecast

Evaluation of HSBC Holdings plc stock downgraded after the last trading session.
(Updated on May 03, 2024)

HSBC Signals & Forecast

The HSBC Holdings plc stock holds buy signals from both short and long-term Moving Averages giving a positive forecast for the stock. Also, there is a general buy signal from the relation between the two signals where the short-term average is above the long-term average. On corrections down, there will be some support from the lines at $43.16 and $40.70. A breakdown below any of these levels will issue sell signals. Furthermore, there is a buy signal from the 3 month Moving Average Convergence Divergence (MACD). Some negative signals were issued as well, and these may have some influence on the near short-term development. A sell signal was issued from a pivot top point on Thursday, May 02, 2024, and so far it has fallen -0.124%. Further fall is indicated until a new bottom pivot has been found. Volume fell together with the price during the last trading day and this reduces the overall risk as volume should follow the price movements.

Support, Risk & Stop-loss for HSBC Holdings plc stock

On the downside, the stock finds support just below today's level from accumulated volume at $41.81 and $38.49. There is a natural risk involved when a stock is testing a support level, since if this is broken, the stock then may fall to the next support level. In this case, HSBC Holdings plc finds support just below today's level at $41.81. If this is broken, then the next support from accumulated volume will be at $38.49 and $37.22.

This stock has average movements during the day and with good trading volume, the risk is considered to be medium. During the last day, the stock moved $0.350 between high and low, or 0.787%. For the last week, the stock has had daily average volatility of 1.00%.

The HSBC Holdings plc stock is overbought on RSI14 and lies in the upper part of the trend. Normally this may pose a good selling opportunity for the short-term trader, but some stocks may go long and hard while being overbought. Regardless, the high RSI together with the trend position increases the risk and higher daily movements (volatility) should be expected. A correction down in the nearby future seems very likely and it is of great importance that the stock manages to break the trend before that occurs.

Our recommended stop-loss: $42.93 (-3.43%) (This stock has medium daily movements and this gives medium risk. The RSI14 is 81 and this increases the risk substantially. There is a sell signal from a pivot top found 1 day ago.)

Trading Expectations (HSBC) For The Upcoming Trading Day Of Monday 6th

For the upcoming trading day on Monday, 6th we expect HSBC Holdings plc to open at $44.57, and during the day (based on 14 day Average True Range), to move between $43.76 and $45.15, which gives a possible trading interval of +/-$0.693 (+/-1.56%) up or down from last closing price. If HSBC Holdings plc takes out the full calculated possible swing range there will be an estimated 3.12% move between the lowest and the highest trading price during the day.

Since the stock is closer to the resistance from accumulated volume at $44.51 (0.12%) than the support at $41.81 (5.95%), our systems don't find the trading risk/reward intra-day attractive and any bets should be held until the stock is closer to the support level.

Is HSBC Holdings plc stock A Buy?

Several short-term signals, along with a general good trend, are positive and we conclude that the current level may hold a buying opportunity as there is a fair chance for HSBC Holdings plc stock to perform well in the short-term. Due to some small weaknesses in the technical picture we have downgraded our analysis conclusion for this stock since the last evaluation from a Strong Buy to a Buy candidate.

Current score: 3.988 Buy Candidate Downgraded

Predicted Opening Price for HSBC Holdings plc of Monday, May 6, 2024

The predicted opening price is based on yesterday's movements between high, low, and closing price.