HSBC dominated by bears dragging the market lower throughout the day
HSBC Holdings plc. (HSBC) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, HSBC finished the week -5.59% lower at 22.97 after tanking $1.43 (-5.86%) today on high volume, significantly underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. This is the biggest single-day loss in over a month. The last time we've seen such an unusually strong single-day loss on April 1st, HSBC lost -2.43% on the following trading day. Today's close at 22.97 marks the lowest recorded closing price ever. The bears were in full control today, moving the market lower throughout the whole session. Ending with a weak close near the low of the day sets a bearish note for the next session.
Daily Candlestick Chart (HSBC as at May 22, 2020):
Friday's trading range has been $0.47 (2.01%), that's above the last trading month's daily average range of $0.39. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for HSBC.
One bearish candlestick pattern matches today's price action, the Black Candle.
Crossing below the lower Bollinger Band for the first time since April 3rd, prices have shown unusually strong downward momentum in the short-term. This could either indicate a potential selling climax after which prices might head back up towards the mean of the Bollinger Bands at 25.07 or signal the beginning of a strong momentum breakout leading to even lower prices.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the 12 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "52 Week Low" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for HSBC Holdings. Out of 101 times, HSBC closed higher 56.44% of the time on the next trading day after the market condition occurred.