The HSBC share price jumped to the highest level since March 2020 as the banking sector started the year on a positive note. The stock is trading at 468p, which is about 73% above the lowest level in 2021. Other bank stocks like Lloyds and Natwest have all gained this year.
HSBC is a giant global banking empire that operates in tens of countries. Most of the bank’s revenue come from the Asian region although it is the biggest European bank by assets.
The company made several strides in 2021. For example, it sold its unprofitable American and French businesses as it boosted its focus on Asia. The company also shifted some of its senior leaders from London to Hong Kong in a bid to accelerate its Chinese business.
At the same time, HSBC was caught up in the challenges facing the Chinese property market where many companies are struggling. Additionally, China’s government policy about equity could lead to focus on companies that provide wealth management.
Looking ahead, 2022 will be a pivotal year for HSBC. The company will continue with its efforts to become a leading player in the Asian market. Also, investors will pay a close attention to the rising interest rates in key markets.
The daily chart shows that the HSBC share price has been in a strong bullish trend in the past few weeks. And this week, the stock managed to cross the key resistance levels at 448p and 456p, which were the highest levels on October 26th and May 28th respectively.
The stock remains above the 25-day and 50-day moving averages. It has also moved above the upper part of the cup and handle pattern that formed in 2021.
Therefore, because of this pattern, the HSBC stock price will likely maintain a bullish trend in 2022. That could see it rise above the key resistance at 500p. This view will be invalidated if the price falls below 450p.
This post was last modified on %s = human-readable time difference 07:19