The holding company for the former HSBC Group operates all over the world. Its share shows a symmetrical triangle bottom at the beginning of 2014.

Negative revisions have been made during the last 12 months, for EPS (-13% for 2014 and -15% for 2015) and for revenues (-8% for 2014 and 2015). Its weak valuation reveals traders opinion on the share and their mistrust on the attractiveness for buyers to take position on it. Indeed, “Surperformance” rating for trading strategies are quite discouraging.

After three waves on the top and only one in the bottom, the stock broke out the symmetrical triangle followed by a successful pullback at the GBp 656.6 resistance. An extension of this downtrend should lead prices toward the GBp 580 support area once the GBP 615.7 support is broke. Moreover, orientation of moving averages in daily and weekly data proves to support the declining movement on prices.

Thus, investors could take a short position below GBp 615.7 looking for a target price at GBp 580. The stop loss will be placed over the entry point at GBp 620.2.