HSBC Holdings is trading up 1.37% at 102.57

HSBC Holdings beat forecasts on Monday with first-half pre-tax profit that more than doubled from last year when it set aside $7 billion to cover pandemic-related bad loans.

Encouraged by an economic rebound in its two biggest markets of Hong Kong and Britain, HSBC reinstated dividend payments, flagged higher pay-outs in the future, and released $700 million that had been set aside as provisions. It also said share buybacks were under review as an option after ruling them out earlier this year.

Like rivals, Europe’s biggest bank is benefiting from better-than-hoped for resilience on the part of companies grappling with the COVID-19 pandemic. That said, a decline in revenue underscored longer-term challenges.

HSBC reported pre-tax profit of $10.8 billion, higher than the $4.32 billion in the same period a year earlier and a consensus estimate of $9.45 billion compiled by the bank.

Revenue fell 4% due to a low interest rate environment especially in Asia, where it makes most of its money, and a weaker performance from its investment bank compared to a strong first half last year.

On technical fronts HSBC Holdings RSI stood at 38.33 and currently stock is trading below all Moving Average. So, SELL position can be taken with following target and stoploss:

TRADE SIGNAL – : HSBC Holdings – SELL: 27.57, TARGET: 27.13, STOP LOSS : 27.71