HSBC Share Price Forecast as its Transformation Accelerates

The HSBC share price has been under pressure in the past few days as the company increases its focus on the Asian segment. The stock declined from 30.55p on Thursday to a low of 29.50.  It is 8.60% below the highest point this year. The stock rose 0.88% in Hong Kong.

HSBC news: HSBC has been shifting its business focus to its fastest-growing and most profitable regions. Last month, the company exited most of its loss-making American operations. And this week, the company said that it was revamping its US investment banking division. 

As part of this strategy, the bank said that four of its senior-most professionals would be leaving the bank. They included Robert Glelnaw, Lex Malas, and Jim Kelly. These executives had more than 60 years of combined experience in the bank. They were replaced by Patrice Altongy from Citigroup, Sarah Salih, and Alfred Traboulsi. The bank said:

“We are continuing to invest and hire senior bankers who can be strategic advisors to the C-Suite of our clients, especially in terms of sector bankers, financial sponsor coverage, and in the financing teams.”

In the past few months, HSBC has shifted its focus to Asia, the fastest-growing economy. It has hired hundreds of wealth managers as it tries to compete with the likes of UBS and Credit Suisse as the number of wealthy Chinese increase. So, what next for HSBC share price?

HSBC share price forecast

The four-hour chart shows that the HSBC stock price has been under pressure lately. It has declined from the year-to-date high of 32.44p to 29.75. Along the way, the stock has moved below the 25-day and 50-day exponential moving averages (EMA). It is also trading slightly above the 23.6% Fibonacci retracement level. At the same time, the price is slightly above the lower line of the ascending channel. 

Therefore, in my view, the stock will rebound as bulls target the upper side of this channel. However, a drop below the 23.6% retracement will invalidate this trend. It will signal that there are still sellers in the market who will be keen to test the 38.2% retracement at 26.88p.

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HSBC stock chart

HSBC share price

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