Is HSBC Closing in to Support?
Published on Tuesday, 05 March 2013 09:28 Written by TradersHuddle Wire
New York, March 5th (TradersHuddle.com) - Shares of HSBC Holdings plc (NYSE:HBC) ended the trading session close to calculated support at $53.90, a level that will raise the attention of traders looking for an entry point.
HSBC's stock range is defined by its calculated support defined at $53.90 and by the resistance level at $57.37. This range could be used as a reference by traders planning their next move. The area where buyer interest might materialize is defined as calculated support. Stocks trading near support might see upside if it can successfully hold the technical level. However, this area if breached will signal participants that the stock failed to entice buyers to step in to support it.
Traders wanting to establish a position should pay close attention to HSBC's price action, and establish it as close to support as possible, but only after buying materializes. Traders should understand that the resistance point at $57.37 might limit their upside, however, if the stock breaks resistance, it could be a good point to add to the position.
Shares of HSBC Holdings plc closed at $53.95 in the prior trading session.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.