HSBC Approaching its 200 Day

Published on Thursday, 29 July 2010 04:40 Written by Christopher Lynn

New York, July 29th (TradersHuddle.com) - Shares of HSBC Holdings plc (NYSE:HBC) closed the trading session at $51.59 near its 200 day moving average currently set at $53.0698. HSBC's price action is below this important level, which makes the stock difficult to buy, as there will certainly be resistance as it approaches its 200 day moving average.

HSBC Holdings plc (NYSE:HBC), through its subsidiaries, 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.

Latest price action range, defined by a peaks and troughs algorithm places calculated support at $45.26 and calculated resistance at $49.41. These levels are being closely watched by traders, as they provide great reference points for the latest price dynamics in HSBC shares.

Traders should evaluate their trade if they want to establish a position on HSBC given the resistance expected as the stock approaches the 200 day moving average. A trade might materialize as the stock manages to break this important level, as it could be used as support going forward, however until the break materializes, traders need to exercise patience. Other levels that traders will be evaluating are the ones defined by the peak and troughs algorithm that provides great price action reference points.