Reference Points for HSBC

Published on Tuesday, 03 July 2012 07:32 Written by TradersHuddle Wire

New York, July 3rd (TradersHuddle.com) - HSBC Holdings plc (NYSE:HBC) closed the trading day at $44.91, near its 50 day moving average that is set at $42.87. HSBC's price action is just above this important support level, providing 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.

The peaks and troughs algorithm shows calculated support at $38.56 and calculated resistance at $44.77. These levels should also be evaluated when planning trades, as they provide an insight into the latest price action.

Traders wanting to establish a position on HSBC should look for evidence of buying near the 50 day moving average, and open this position as close as possible to this important level. Also, they need to consider the latest range defined by the peaks and troughs algorithm for insights on other key levels that might impact an upside or downside move.