Since the beginning of July binary HBC is on a tremendously rising pattern after the dramatic value drop of HSBC Holdings plc (ADR) (NYSE:HBC) in mid-May. The degree of value gains are well-illustrated by the fact that currently, HBC stands higehr than its ranges of MA – 50 ($ 42.63)and MA – 200 ($42.06), as this could be seen from the graph as well.
Strike prices of binary option on HSBC Holdings since last month, have been into an increasing channel. Presently, HBC is exchanged at $ 43.48 per share.
Mainly, in May, binary HBC started losing value very aggressively because of its published not spectacular Q1 – 2012 financial reports. To begin with, net operating income (before loan impairment charges and other credit provisions) was US$16.2bn in 1Q12, US$0.8bn lower than in 1 – Q11. Primarily this was the effect of adverse credit spread movements on the fair value of our own debt of US$2.6bn compared with adverse movements of US$0.6bn in 1 – Q11.
Moreover, HSBC Holdings just suffered from a decreased investor credibility after it was announced that the bank allowed Mexican drug cartels to launder billions of dollars through its U.S. operations, a Senate investigation found. Most binary traders are aware that usually a damaged public image suggests pressures on the price of the company’s stock. Thus, if binary options on HBC return on the negative trend, this would be a realistic scenario.
Furthermore, binary analysts’ attention should be turned to the fact that the trading volume is standing at very low levels. In fact, within the lowest of the whole year. This implies in that there is a a decreased investor interest in HBC and if this pattern continues this would put depreciating pressures on the value of binary HBC.
The information in this analysis is collected from different sources and should serve for informative purposes only. The author shall not be held responsible for the validity of the presented information. No part of this analysis recommends the purchase or sale of a currency pair or any other financial instrument.