HSBC has shown fantastic strength over the past 12 months, rising from 414p to 715p.
In my opinion the shares are now running out of steam and could be due a deeper correction. There is a sequence building of lower highs and lower lows on the daily chart, which is beginning to form a bearish channel. Yesterday the shares broke below a small uptrend line, which could be the trigger for a pullback.
There is bearish divergence on the RSI and the shares have found resistance on a relative basis versus the FTSE100.
According to my fundamental ranking model the shares score poorly, ranking at 100 out of 100.
My trade today is to sell on the open.
Stop loss at 701p
Targeting 645p on the downside, then in extension of that towards 620p.