HSBC near Key Resistance Area

Published on Wednesday, 25 January 2012 06:52 Written by Danny Miller

New York, January 25th (TradersHuddle.com) - Shares of HSBC Holdings plc (NYSE:HBC) are trading very close to calculated resistance at $42.83 with the current price action closing at just $42.23 placing the stock near levels that make it difficult to buy.

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.

HSBC's current stock range is defined by current calculated support defined at $36.67 and by the resistance level at $42.83, the stock is clearly over-extended from support, making it difficult to establishing new long positions at this level.

Traders don't have a clear entry point for HSBC, as the stock is well above support, however, as the stock pulls back towards $36.67 it will definitely provide a reference point to establish a trade. On the other hand if the stock decides to break above resistance level at $42.83 then traders will get an opportunity to enter HSBC stock by establishing a position as the stock moves to a higher range.