Will HSBC HOLDINGS PLC-SPONS ADR (NYSE:HSBC) breakout?

Our stock screener has flagged HSBC HOLDINGS PLC-SPONS ADR (NYSE:HSBC) as a potential breakout candidate. This occurs when the stock shows signs of consolidation after a notable upward trend. While we can't predict the actual breakout, it's worth monitoring NYSE:HSBC for potential movement.

Insights from Technical Analysis

ChartMill utilizes a proprietary algorithm to assign a Technical Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of technical indicators and properties.

Taking everything into account, HSBC scores 10 out of 10 in our technical rating. Both in the recent history as in the last year, HSBC has proven to be a steady performer, scoring decent points in every aspect analyzed.

• The long and short term trends are both positive. This is looking good!
• Looking at the yearly performance, HSBC did better than 94% of all other stocks. We also observe that the gains produced by HSBC over the past year are nicely spread over this period.
• HSBC is part of the Banks industry. There are 401 other stocks in this industry. HSBC outperforms 96% of them.
• HSBC is currently trading in the upper part of its 52 week range. The market is still in the middle of its 52 week range, so HSBC slightly outperforms the market at the moment.
• In the last month HSBC has a been trading in the 54.71 - 61.88 range, which is quite wide. It is currently trading in the middle of this range where prices have been consolidating recently, this may present a good entry opportunity, but some resistance may be present above.

Our latest full technical report of HSBC contains the most current technical analsysis.

How does the Setup look for HSBC

Besides the Technical Rating, ChartMill also assign a Setup Rating to every stock. This setup score also ranges from 0 to 10 and determines to which extend the stock is consolidating. This is achieved by evaluating multiple short term technical indicators. HSBC currently has a 8 as setup rating:

Besides having an excellent technical rating, HSBC also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. A pullback is taking place, which may present a nice opportunity for an entry. There is very little resistance above the current price. There is a support zone below the current price at 57.06, a Stop Loss order could be placed below this zone.

Trading setups like HSBC

A breakout opportunity may arise when the stock surpasses the current consolidation zone and reaches new highs. Traders often wait for this breakout before considering buying the stock. To manage risk, a stop loss order could be placed below the consolidation zone to limit potential losses.

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents technical observations generated by automated analysis but does not guarantee any trading outcomes. Always trade responsibly and make independent judgments.

Every day, new breakout setups can be found on ChartMill in our Breakout screener.

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.