HSBC - The latest bank to perform

Monday, 6th August 2018 09:32 - by Rajan Dhall

HSBC is called to open higher this morning as revenues grow 4%. The world's bank has performed well over the last 6 month with Reported profit before tax of $10.7bn 5% higher and Adjusted revenue of $27.5bn which is 2% higher.

In a happy address, John Flint stated "We are taking firm steps to deliver the strategy we outlined in June. Today's results, which are in line with our expectations, show strong revenue growth in our global businesses. This is creating room to invest while maintaining our commitment to full-year positive adjusted jaws. We are investing to win new customers, increase our market share, and lay the foundations for consistent growth in profits and returns."

Looking at the chart and it's clear we are in an uptrend on the weekly. HSBC's exposure to Asia is a clear advantage and the GBP/USD exchange rate has also been a favourable factor. A break of the 736p wave high could lead to another run on 800p as the sector as a whole has performed well over this earnings season. Short term the trendline at the top of the triangle may provide some resistance but in case we see some downside movement the 700p and 693p level look strong on the daily chart for support.