Will HSBC shares revisit their financial crisis low?
This chartist identifies the danger level for HSBC shares and how we'll know when a 'bottom' is in.
18th June 2020 08:47
by Alistair Strang from Trends and Targets
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This chartist identifies the danger level for HSBC shares and how we'll know when a 'bottom' is in.
HSBC (LSE:HSBA)
It appears HSBC's (LSE:HSBA) 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 to 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 doubtlessly find an excuse to explore 358p and, hopefully, the market appreciates the price is staring into an abyss, thus forcing a strong recovery.
Source: Trends and Targets. Past performance is not a guide to future performance.
Alistair Strang has led high-profile and "top secret" software projects since the late 1970s and won the original John Logie Baird Award for inventors and innovators. After the financial crash, he wanted to know "how it worked" with a view to mimicking existing trading formulas and predicting what was coming next. His results speak for themselves as he continually refines the methodology.
Alistair Strang is a freelance contributor and not a direct employee of interactive investor.
All correspondence is with Alistair Strang, who for these purposes is deemed a third-party supplier. Buying, selling and investing in shares is not without risk. Market and company movement will affect your performance and you may get back less than you invest. Neither Alistair Strang, or interactive investor will be responsible for any losses that may be incurred as a result of following a trading idea.
Alistair Strang has led high-profile and "top secret" software projects since the late 1970s and won the original John Logie Baird Award for inventors and innovators. After the financial crash, he wanted to know "how it worked" with a view to mimicking existing trading formulas and predicting what was coming next. His results speak for themselves as he continually refines the methodology.
Alistair Strang is a freelance contributor and not a direct employee of Interactive Investor. All correspondence is with Alistair Strang, who for these purposes is deemed a third-party supplier. Buying, selling and investing in shares is not without risk. Market and company movement will affect your performance and you may get back less than you invest. Neither Alistair Strang or Interactive Investor will be responsible for any losses that may be incurred as a result of following a trading idea.
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