GET DAILY SIGNALSBrexit Issues Hurting HSBC, Stock Trending Lower
From the middle of 2016 through the beginning of 2018, HSBC Holdings (NYSE: HSBC) saw its stock price double, moving from $26 a share to over $52. The London-based bank holding company has seen its fortunes reverse since the end of January and the stock has lost 19%. At the low in October, the stock was down 26.6% from its high.
The stock has seen a downwardly sloped trend channel form over the last 10 months and it just hit the upper rail of the channel this past week. We see that the daily stochastic readings are in overbought territory and just made a bearish crossover on Friday which could signal that the trend channel will continue to define the cycles within the downtrend.
One thing that seems to be hounding HSBC is the status of Britain’s exit from the European Union—Brexit. Because there is so much uncertainty about how the separation will occur, British banks seem to be investment pariahs. The recent Bank of England stress tests showed the banks have adequate reserves, but there are concerns that they will be at a disadvantage on the global market once the exit is complete.
Brexit issues aren’t the only thing that is hurting HSBC. Over the last three years, the earnings have been flat while sales have declined at a rate of 7% per year. These are not the kind of numbers you want to see from a company while there has been global economic expansion.
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HSBC's RSI Indicator remains in oversold zone for 3 days
The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an uptrend is expected.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 6 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a +0.69% 3-day Advance, the price is estimated to grow further. Considering data from situations where HSBC advanced for three days, in 251 of 368 cases, the price rose further within the following month. The odds of a continued upward trend are 68%.
HSBC may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on October 22, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on HSBC as a result. In 34 of 85 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 40%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where HSBC declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 47%.
The Aroon Indicator for HSBC entered a downward trend on October 30, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is 3 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is 8 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 21, placing this stock better than average.
The Tickeron Seasonality Score of 50 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Price Growth Rating for this company is 61 (best 1 - 100 worst), indicating fairly steady price growth. HSBC’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is 67 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of 74 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.486) is normal, around the industry mean (1.525). P/E Ratio (12.116) is within average values for comparable stocks, (11.866). Projected Growth (PEG Ratio) (0.887) is also within normal values, averaging (2.139). Dividend Yield (0.023) settles around the average of (0.034) among similar stocks. P/S Ratio (4.724) is also within normal values, averaging (3.867).
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a major bank
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