Brexit 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 in -1.44% downward trend, sliding for three consecutive days on August 19, 2026
Moving lower for three straight days is viewed as a bearish sign. Keep an eye on this stock for future declines. Considering data from situations where HSBC declined for three days, in of 213 cases, the price declined further within the following month. The odds of a continued downward trend are .
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for HSBC moved out of overbought territory on August 04, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 51 similar instances where the indicator moved out of overbought territory. In of the 51 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Moving Average Convergence Divergence Histogram (MACD) for HSBC turned negative on August 06, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 41 similar instances when the indicator turned negative. In of the 41 cases the stock turned lower in the days that followed. This puts the odds of success at .
HSBC broke above its upper Bollinger Band on July 30, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 47 cases where HSBC's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on August 19, 2026. You may want to consider a long position or call options on HSBC as a result. In of 82 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where HSBC advanced for three days, in of 373 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 421 cases where HSBC Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Fundamental Analysis (Ratings)
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 20, placing this stock better than average.
The Tickeron SMR rating for this company is (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 PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding 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 Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. HSBC’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued 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 (1.815) is normal, around the industry mean (1.897). P/E Ratio (14.879) is within average values for comparable stocks, (15.307). Projected Growth (PEG Ratio) (1.027) is also within normal values, averaging (1.603). HSBC has a moderately high Dividend Yield (0.036) as compared to the industry average of (0.026). P/S Ratio (4.878) is also within normal values, averaging (3.937).
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a major bank
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