HSBC (LON: HSBA) share price is trading at 14.5% below its yearly highs after a massive correction in March 2023. In the last few weeks, shares of the British banking giant have shown a great recovery gaining 8.8% since their March lows. Our analysis shows that the shares can surge above 600p once again if they break above a key level.
Shares of HSBC Holdings plc have remained sideways this week after a rallying last week. On Thursday, the shares were up 0.58% till press time and were trading at 557.4p. Shares of other UK banks like NatWest Group, Lloyds, and Barclays also showed a positive price action today.
HSBC To Redeem $2 Billion Bonds Before Maturity
According to the most recent HSBC news, the bank intends to fully redeem fixed-rate/floating-rate bonds worth $2 billion ahead of their 2024 maturity date. As per the official disclosure, the redemption will take place on 18 May. In other news, the bank’s leadership is trying to convince the major shareholders to vote against the separation of its Asian business.
During a meeting with investors in Hong Kong, the HSBC chairman said that a break-up would destroy value for the shareholders. Despite the uncertainty, HSBC share price has remained sideways amid these developments.
According to the reports, some shareholders are also urging the management to bring the dividends to their pre-pandemic levels. Just recently, the UK arm of Silicon Valley Bank was acquired by HSBC for £1.
HSBC Share Price Needs To Break 565p
After a strong rebound from its March 2023 lows, LON: HSBA is retesting the critical resistance of 565p. This level has resulted in multiple rejections in the past. The daily chart also shows that HSBC stock has broken below the upward trendline and now trading below it. Nevertheless, our HSBC share price forecast will flip bullish once the price breaks above the 565p resistance.
In case of a rejection, the shares may retest the 200-day moving average once again, which currently lies at 533.8p. A break below this level will be very bearish for HSBC stock.