HSBC (5-hk): The worst is yet to come
HSBC (5-hk), a multinational banking group, has been one of the worst performing constituent of the Hong Kong’s Hang Seng Index, which has dropped for a third straight week.
While HSBC was hit by disappointing earnings results released in early August, Chinese media Global Times reported that the bank may be listed in Chinese government's Unreliable Entity List, aimed at foreign entities that engage in actions that endanger the country's national sovereignty, according to Chinese media Global Times. Its share price slumped to the lowest level since 1995 during early trading hours today.
On a daily chart, HSBC’s (5-hk) decline shows no signs of stabilizing. It has broken below its previous low marked in August, without showing a bullish RSI divergence. The level at $32.75 may be considered as the nearest resistance, with prices likely to test the 1st and 2nd support at $28.00 and $25.55 respectively. Alternatively, a break above $32.75 might trigger a further rebound to test the next resistance at $35.00.
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