HSBA share price eyes all-time high

The HSBC (LON: HSBA) share price is hovering near its all-time high ahead of the company’s earnings scheduled for Tuesday. The stock has risen for four straight months and is trading at 624p, which is a few points below its record high of 658p. It has jumped by ~140% from its lowest point in 2022, making it one of the best-performing banks in the UK.

HSBC earnings preview

UK banks started to publish their financial results last week. Barclays, the giant company, released weak financial results as its investment banking division disappointed. NatWest, on the other hand, published encouraging results as high interest rates helped to drive its growth. 

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HSBC will be the first major bank to deliver its results this week. Analysts expect that the company wil publish strong results, helped by higher interest rates in its key markets in Europe and Asia. For example, analysts at Barclays believe that the company’s profits will come in at $6.5 billion. For the ful year, HSBC is expected to post revenues of over $23.4 billion. 

HSBC share price has numerous catalysts. For one, unlike other banks, it has continued lending to oil and gas companies, a move that could pay off. Several banks, including Lloyds, have announced that they will phase out this type of lending in the future.

Further, HSBC has announced plans to increase its investments in the Chinese industry where it is focusing on wealth management. The sub-segment is doing so well such that Standard Chartered announced that it will hire hundreds of workers to do the services. 

Another key issue that could boost HSBC’s stock is its ongoing business transformation which has seen it exit some of its non-core markets like Canada, France, and the United States. Most importantly, it will likely continue its share buybacks and dividends.

HSBC share price forecast

HSBC chart by TradingView

Turning to the weekly chart, we see that the HSBC stock price has been in a strong bullish trend in the past few months. It managed to flip the resistance at 548p into support January 3. The shares have also jumped above the 50-day and 100-day moving averages while the Relative Strength Index (RSI) has moved above the overbought level.

Therefore, the outlook of the stock is bullish, with the next key level to watch being its all-time high at 658p. Flipping that level into support will bring the next level at 700p into view.