Standard Chartered (2888.HK) Bounces 6%...But Key Resistance Remains at HK$46.50
Ming Lam April 29, 2020 10:49 AM
A Bearish Gap marked on March 13 has not yet been filled back...
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.