Standard Chartered (2888.HK) Bounces 6%...But Key Resistance Remains at HK$46.50

A Bearish Gap marked on March 13 has not yet been filled back...

Downtrend 2

Standard Chartered (2888.HK) reported that first-quarter underlying profit before tax slid 12% on year to $1.2 billion.

Credit Impairment surged to $956 million (from $78 million in the prior-year period), driven by the economic impact of the rapid spread of the coronavirus.

Return on tangible equity dropped 100 basis points to 8.6%.

Meanwhile, the Bank offered an optimistic outlook, saying: "We expect a gradual recovery from the COVID-19 pandemic, (...) before the global economy moves out of recession in the latter part of 2020, most likely led and driven by markets in our footprint."

On a Daily Chart, the Stock closed today (April 29) 6.2% higher at HK$39.60, around the descending 20-day moving average.

Source: GAIN Capital, TradingView

However, it is struggling to pull away from a recent closing low of HK$36.70.

A Bearish Gap marked on March 13 has not yet been filled back. 

The Key Resistance remains at HK$46.50, which is the opening of the Bearish Gap mentioned above. It is also around the descending 50-day moving average.

Unless this Key Resistance is surpassed, the Technical Configuration remains a bearish one.

A pull-back to HK$36.70 (recent closing low) would expose the next support level at HK$32.00.

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