HSBC Close to the 50 Day

Published on Thursday, 19 January 2012 07:36 Written by Danny Miller

New York, January 19th (TradersHuddle.com) - Shares of HSBC Holdings plc (NYSE:HBC) closed the trading day at $40.12 close to its 50 day moving average currently set at $38.78. HSBC's price action is just above this important support level translating into a trading opportunity.

HSBC Holdings plc (NYSE:HBC) is the holding company for the HSBC Group. The Financial firm provides a variety of international banking and financial services, including retail and corporate banking, trade, trusteeship, securities, custody, capital markets, treasury, private and investment banking, and insurance. The Group is headquartered in London and operates worldwide. The firm is the largest lender in Europe and one of the largest banking institutions worldwide, with the most emerging markets exposure.

Looking at peaks and troughs horizontal support and resistance levels, we can see current calculated support at $36.67 and calculated resistance at $39.52. These levels should also be evaluated by traders when planning their trades, as they provide an insight into the latest price action.

Traders wanting to establish a position on HSBC will be looking at the price action for evidence of buying near the 50 day moving average, and opening a position as close as possible to this important level. Also traders will be looking at the latest price action, via the stocks current range previously defined for insights of other key levels that might affect their upside or downside.