HSBC Stocks Overview – Ban On Staff Buying Stocks

HSBC Stocks Overview – Ban On Staff Buying Stocks

HSBC is said to ban staff buying stock, bonds on own account.
HSBC Holdings Plc has instructed about 6,000 employees of its global markets division to cease buying single-name securities on their personal accounts. Purchases of single-name stocks, bonds and concentrated exchange-traded funds will be prohibited, Global Head of Markets Thibaut de Roux told staff in an email on Friday, said the people, who asked not to be identified discussing internal communications. The changes also apply to employees managing the lender’s own balance sheet.

HSBC wouldn’t be the first big bank to toughen a policy addressing conflicts of interest. Goldman Sachs Group Inc. barred investment bankers from trading individual stocks and bonds in 2014. By contrast JPMorgan Chase & Co. allows traders to deal for their personal gain through approved brokers. It bans “speculative and other short-term investment activity” or purchasing the securities of a client, according to a 2016 rule book.

Traders can’t seem to get enough of HSBC Holdings Plc. They’ve sent the shares up more than 20 percent in 2017, and they’re using options to bet on further gains. Bullish contracts are now the priciest in more than two years relative to bearish ones, while the ratio of outstanding calls to puts is near its highest level since 2002.

HSBC Holdings plc (NYSE:HSBC) closed at $48.21 after seeing 1358796 shares trade hands during the most recent session.  This represents a change of 0.86% from the opening.  The shares have moved 2.68% on the week.

Overall, the bias in prices is: Upwards.

Short term: Prices are moving.

Intermediate term: Prices are trending.

Note: this chart shows extraordinary price action to the upside.

By the way, prices are vulnerable to a correction towards 45.17.

The projected upper bound is: 49.67.

The projected lower bound is: 47.01.

The projected closing price is: 48.34.

Candlesticks

A big white candle occurred. This is generally considered bullish, as prices closed significantly higher than they opened. If the candle appears when prices are “low,” it may be the first sign of a bottom. If it occurs when prices are rebounding off of a support area (e.g., a moving average, trendline, or retracement level), the long white candle adds credibility to the support. Similarly, if the candle appears during a breakout above a resistance area, the long white candle adds credibility to the breakout.
During the past 10 bars, there have been 8 white candles and 2 black candles for a net of 6 white candles. During the past 50 bars, there have been 23 white candles and 26 black candles for a net of 3 black candles.

Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 94.2644. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 4 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 78.97. This is where it usually tops. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 40 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 83. This is not a topping or bottoming area. The last signal was a sell 5 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 10 period(s) ago.

Rex Takasugi – TD Profile

HSBC HOLDING ADR closed down -0.150 at 48.210. Volume was 26% below average (neutral) and Bollinger Bands were 173% wider than normal.

Open     High      Low      Close     Volume
47.800  48.300  47.755  48.210  1,358,796

Technical Outlook
Short Term:                Overbought
Intermediate Term:  Bullish
Long Term:                 Bullish

Moving Averages: 10-period  50-period  200-period
Close:                       47.50         44.47          41.41
Volatility:                14                19                21
Volume:                   1,511,830   1,733,217   2,031,194

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

HSBC HOLDING ADR is currently 16.4% above its 200-period moving average and is in an upward trend. Volatility is high as compared to the average volatility over the last 10 periods. Our volume indicators reflect moderate flows of volume into HSBC.K (mildly bullish). Our trend forecasting oscillators are currently bullish on HSBC.K and have had this outlook for the last 10 periods. Our momentum oscillator is currently indicating that HSBC.K is currently in an overbought condition.

HSBC Description
HSBC Holdings PLC is a British–Hong Kong multinational banking and financial services holding company headquartered in London, United Kingdom. It is the world’s seventh largest bank by total assets and the largest in Europe with total assets of US$2.374 trillion

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Ivy Heffernan

My name is Ivy Heffernan, and I am interested in a wide range of professions. Economics and politics at the age of 18 is easy when your father has a Ph.D in economics, i have been taught to put together technical analyst and stay up to date with the changing markets as well as what is happening in the political world.

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