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HSBC - HSBC expected to report earnings next week. will it follow in NatWest's footsteps?

Chart & Data from IG

By Minipip
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HSBC - HSBC expected to report earnings next week. will it follow in NatWest's footsteps?

Taking a look at HSBC after its peer NatWest reported earnings earlier, NatWest is currently up almost 5% on the day. HSBC shares are trading at around 631p a share, the bank is scheduled to report earnings next Wednesday. It is expected to report earnings of £0.21 on revenue of £12.7bn. Looking at the chart from a technical standpoint, we can see that its share price has been finding resistance along the upper trendline, the resistance points are marked by the red, orange and yellow ovals. The pattern here is clear, every time a resistance point is reached, a pullback towards the lower trendline occurs. We can see that by looking at the red and orange oval, however, there is a slight difference when we look at the yellow oval. Even though the share price has found resistance, the pullback towards the lower trendline has not followed through. In fact, it seems like the price may have found support highlighted by the green oval. This may suggest a change of trend with a build of buying pressure, it seems like the price is now gearing up to re-test the trendline resistance once again. The resistance reads 634p. A break and close above this level could be the beginning of a new bullish trend, with the following resistance levels at 643p and then at 660p. Towards the downside, the support now reads 601p and then the base support of 581p. Looking at the technical indicators, the MACD is positive and so is the RSI as it reads 59. 

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