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HSBC Share Price Remains on Course to Attain the 600p Mark

The HSBC share price is trading higher today as the bulls aim to erase the losses of the previous two sessions. The stock is up 1.73% higher on the back of the positive display by UK and European banks in the US Fed stress tests for banks.

Also, boosting the demand for HSBC stocks and pushing the HSBC share price northwards is the buyback of nearly $21 million worth of shares in the London and Hong Kong stock exchanges. The share repurchase is part of the $1 billion share buyback program the bank will undertake. 

The bank is also part of a consortium of banks that have been selected to manage a $2.3 billion climate-focused pension fund. Reuters reported on Friday that HSBC will be joined by Legal & General Group, Schroders, Morgan Stanley and Wellington Management to manage an equal share of the pension fund. 

HSBC Share Price Forecast

The day’s uptick continues the evolution of the ascending triangle on the daily chart. A break of the 540.5 resistance completes the triangle’s evolution and leaves the stock with a chance to hit a measured move that targets the 600.0 psychological resistance (20 January and 17 February 2020 highs). To achieve this move, the bulls must uncap resistance barriers at 551.3 (3/23 February 2022) and the 574.1 price mark, where a previous high was seen on 18 February 2020. 

On the flip side, the continuation of the uptrend is invalidated if the bears can push prices lower, degrading the 515.3 support level (14 April low) in the process. This price point is where the triangle’s lower border is located. A breakdown of this border opens the door toward the 504.7 support (9/17 May highs in role reversal). Below this level, the bears will have additional harvest points at 491.5 (17 March and 23 May lows) and 482.0, where the 27 April 2022 low is seen.

HSBA: Daily Chart