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- 1 HSBC (LON: HSBA) stock price: The company has made an acquisition in China, see the details.
- 2 The stock is near breaking its resistance zone but the RSI is already on the oversold level of 67.
- 3 The company has made a revenue growth of 43% last year.
HSBC (LON: HSBA) stock price has risen more than 37% in a year while the financial performance has also been amazing during the period. In 2022, the HSBA stock managed to generate a revenue of £76 Billion. That marks a significant 43% growth as compared to the previous year.
Moreover, the net income was reported to be £12.03 Billion, which accounts for approximately 15% of the total revenue. With an increase in profits, the company distributed over 44% of the net profit in dividends. It translates to a dividend per share (DPS) of £0.27 and a Dividend yield of 5.18%.
The acquisition
HSBC is all set to make an acquisition deal with Citigroup’s (C.N) China consumer wealth management corporation. Citi has an asset under management of over £3B. However, HSBC and Citi declined to comment on the amount and size of this deal. The action would add to a rundown of late moves by HSBC to grow its presence in China, one of its key business sectors.
The plan behind the acquisition
The acquisition adds to a list of moves by HSBC to expand in China, one of its key markets. Europe’s largest lender vows to exit less profitable geographies to focus on its vital revenue generator, Asia. This move by HSBC also comes while expanding contest in the area, as unfamiliar resource administrators will likely take advantage of China’s developing working class.
Technical Analysis and Prediction of HSBA Stock Price
The HSBA stock price is currently trading at the level of £650. As the bulls reclaimed their support level of £561, the shares surged to the immidiate resistance of £652. The 50-day moving average is £621, while the 150-day moving average is £602.
As the bulls have reached the level of the supply zone, the RSI has also reached its overbought level of 70. That means the bulls might have a problem breaking the resistance as the selling pressure will be higher.
The prediction of HSBA stock price will be bullish, but only after a deviation at the resistance, as the RSI suggests. A fresh, long entry can be made if the trend reversal is observed after the deviation. On the other hand, if the sell pressure is intense, the stock may test its support again.
Conclusion
HSBC (LON: HSBA) has acquired a company from China. The acquisition adds to a list of moves by HSBC to expand in China. This company has been performing well in the last year by growing its revenue and distributing dividends. The current price is near its resistance, but it is predicted that a deviation will come before the breakout for a bullish trend.
Technical Levels
Support: £599 and £561
Resistance: £652 and £694
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets or stocks comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
