Key Level for HSBC

Published on Sunday, 22 August 2010 17:24 Written by TradersHuddle Staff

New York, August 22nd (TradersHuddle.com) - Shares of HSBC Holdings plc (NYSE:HBC) closed the trading session at $49.30 near its 50 day moving average currently set at $49.42. 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 50 day.

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 $50.64 and calculated resistance at $54.08. These levels will be closely watched by traders, as they provide great insight into the latest price dynamics defined by 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 50 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 buying the stock is nothing different than flipping a coin. Other levels that traders will be evaluating are the ones defined by the peak and troughs algorithm that provides great price level reference points.