The HSBC share price has made a steady recovery in the past few days as the market outlook continues. The stock is trading at 494p in London, about 14% above the lowest level this month. It has become one of the best-performing UK bank stocks. There are several reasons why the HSBC stock price has risen recently. First, there has been optimism about higher interest rates. On Wednesday, the Fed decided to deliver its first interest rate hike since 2018 as it warned about the current state of inflation.
Analysts expect that the Bank of England (BOE) will deliver its third straight rate hike today. Higher rate hikes are positive for banks because they lead to higher interest margins. Second, HSBC shares have risen as investors cheer the company’s focus on the Asian market. Last year, the bank sold its American and French divisions. It also moved its senior-most officials from London to Hong Kong. This year, the company decided to exit its Greek business.
Third, HSBC has become the first bank to move into the metaverse. This week, it announced that it had bought a plot of land in The Sandbox ecosystem. This is part of the bank’s strategy to lure younger people into its ecosystem. Finally, the shares have risen because of the feeling that it got oversold recently.
HSBC share price forecast
The daily chart shows several things about HSBC shares:
- It dropped to a low of 438p, which was the highest point on May 28th. It was an important support level.
- Second, the stock has formed the Elliot wave pattern and is currently forming its fifth wave.
- The stock has moved above the 25-day and 50-day moving averages.
Therefore, there is a likelihood that the HSBC stock will continue rising as bulls target the next key resistance level at 525p. The bullish view will be invalidated if the price moves below the support at 470p.
