HSBC share price is the second-best performing in the FTSE 100 today. It is up by more than 2% a day after the company announced a new strategic shift. Other UK banks like Barclays, Lloyds, NatWest, and Standard Chartered are also rising.
What happened: HSBC Group, the biggest European bank by assets, has been under pressure lately. The company has been caught between the tensions between China and Western countries like the US. Last year, it was condemned by the US and UK after it came in support of the Hong Kong security law.
In a statement yesterday, the bank’s chairman said that it was accelerating its strategy to be a bigger bank in the Chinese market. The new strategy will be unveiled in February when it will deliver its full-year results. Mark Tucker, the chairman said;
“We are accelerating the plan by confirming areas of focus for the bank, especially in Asia where we see real opportunities to grow our wealth business and expand across South Asia.”
Last year, HSBC hired wealth managers in China, where it is looking to compete with companies like UBS that have a considerable market share there.
HSBC share price forecast
On the daily chart, we see that the HSBC share price has bounced back by more than 40% from its lowest level last year. However, in the past few days, the stock has been moving sideways. It has found this resistance close to the 38.2% Fibonacci retracement level. Also, it seems like the stock is forming a double-top pattern, whose neckline is at the 23.6% level at 373p.
Therefore, there are two potential outcomes for the company. First, the stock could break-out and continue rallying. Alternatively, because of the double-top, it could resume the downward trend.
HSBC shares chart