HSBC Holdings plc Stock Forecast

Green day on Friday for HSBC Holdings plc
(Updated on May 03, 2024)

0005.HK 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 HK$66.51 and HK$62.69. A breakdown below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Friday, April 19, 2024, and so far it has risen 12.13%. Further rise is indicated until a new top pivot has been found. Furthermore, there is a buy signal from the 3 month Moving Average Convergence Divergence (MACD). Volume fell during the last trading day despite gaining prices. This causes a divergence between volume and price and it may be an early warning. The stock should be watched closely.

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 HK$62.40 and HK$60.25. 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 HK$62.40. If this is broken, then the next support from accumulated volume will be at HK$60.25 and HK$59.60.

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 HK$0.400 between high and low, or 0.579%. For the last week, the stock has had daily average volatility of 1.41%.

The HSBC Holdings plc stock is extremely overbought on RSI14 (76). Normally this may pose a good selling opportunity but since the stock has broken the trend up, the chance for a major correction due to high RSI is very small as the stock will find support at the trend broken. Since the HSBC Holdings plc has been rising for 9 days in a row, the risk over the next couple of days has increased. As we cannot be certain with regards to the size of the reaction, we urge caution.

Our recommended stop-loss: HK$67.28 (-2.98%) (This stock has medium daily movements and this gives medium risk. The RSI14 is 76 and this increases the risk substantially. There is a buy signal from a pivot bottom found 9 days ago.)

Trading Expectations (0005.HK) For The Upcoming Trading Day Of Monday 6th

For the upcoming trading day on Monday, 6th we expect HSBC Holdings plc to open at HK$69.28, and during the day (based on 14 day Average True Range), to move between HK$68.29 and HK$70.41, which gives a possible trading interval of +/-HK$1.06 (+/-1.53%) up or down from last closing price. If HSBC Holdings plc takes out the full calculated possible swing range there will be an estimated 3.07% move between the lowest and the highest trading price during the day.

With no resistance above and support from accumulated volume @ HK$62.40, some HK$6.95 (10.02%) from the current price of HK$69.35, our system finds the risk reward attractive.

Is HSBC Holdings plc stock A Buy?

HSBC Holdings plc holds several positive signals, but we still don't find these to be enough for a buy candidate. At the current level, it should be considered as a hold candidate (hold or accumulate) in this position whilst awaiting further development.

Current score: 0.000 Hold/Accumulate Unchanged

Zero in score indicates that our system is expecting high volatility and risk for the following trading day. Given the latest developments, we cannot determine the next direction as it may go both ways.

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.