Stock of the day: HSBC

On the first day on June, we’ll analyse UK bank HSBC, one of the largest the world. We’ve mentioned Barclays and Lloyds before, but it’s the first time we tackle HSBC. The situation on the chart is bullish, so we are in line with the main sentiment’s globally seen over the last few sessions.

The buy signal for HSBC is coming from the fact, that the price escaped from a big symmetric triangle formation, which started forming at the end of the last year. For months, the volatility was decreasing and eventually, at the end of May, the triangle came to an end – the price broke its upper line and surged higher.

The breakout was very technical as it later tested the broken resistances as a support. The test was positive for buyers and the price went higher hitting new, mid-term highs. The first target for HSBC is the horizontal resistance around 5.4 (orange) and the second is the yellow area around 5.65 GBP. If the positive sentiment on the global markets prevails, the chance for the price of HSBC to reach the local resistances is quite high.