How HSBC can avoid a tumble

A strong argument exists suggesting HSBC is heading to 532p in the fullness of time. It just needs to move above 490p, the blue line, to signal some growth has commenced.

And that's about the end of the good news, as, until the price actually betters the dashing line at around 600p currently, it's trading in a region with a logical bottom down at 218p.

This facet of the price table sounds utterly absurd, unless one opts to view movements since 1995. Even then, it still looks absurd when one considers the rest of the market. This is why we don't just spout our software results without actually checking whether they make any sense. Just because something is possible never makes it probable.

But we'd certainly experience a quiver if the share price now manages below red (410p) currently, as an express ride down to an initial 320p makes sense.

We've a fairly strong reason favouring 532p against this, but a glance at the chart above tends to suggest some stutters will be experienced if this is indeed the case.

Only with closure above 532p would we anticipate that the share price, doubtless along with the rest of its sector, is starting to repay the faith shown by the gullible since the highs of 2013 - when politicians were boasting at their success in saving the entire banking sector and running a UK economy which was the strongest in their own known galaxy.

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