HSBC US

Some of my friends are thinking of buying HSBC shares. I myself still own some of their odd lots left behind from years ago. So I decide to take a look at this stock now. HSBC is listed on both UK and the US. At a glance I would rather talk about the US entity since the UK's has nothing of extreme bullishness therein.

The US HSBC has already registered a lower low and a higher MACD troughs, thus presenting a bullish divergence. Price is now closed above the top Bollinger Band with the MACD crossing above the zero signal line. The D+ has also crossed above the D- , all these are considered as bullish factor. But then since the ADX still remain flat and at a lowly 16's, I would not do anything significant as the Stochastic has already gone overbought. (if the ADX has been rising and go with a high value eg. >25, then I would watch the MACD and sideline the Stochastic). You may just want to nibble a bit here. I would do something once the Bollinger Band crosses up above the mid term moving average (red line).

HSBC is like many stocks now which are merely doing a techncial rebound from a grossly oversold zone. The weekly chart offers no evidence that it has begun a new bull cycle yet. So I would just treat this as a strong short term trade and NOT as a longer term investment vehicle. You may want to watch 38.00 and 47.00 for resistance.