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.

More from Equities

Related Articles

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.