HSBC suspends all foreclosures- 4 letters: M-E-R-S
I like this as a possible short for several reasons, one is it's a European bank and I feel that the rescue mechanism in the eurozone is in big trouble with Merkel's party's recent shocking defeat in Hamburg elections, sending a clear message, "We are tired of bailing out the rest of Europe".
This is a 2 day chart because foreign charts tend to be very "gappy", but look at the volume on the breakdown! Right now we are close to some gap support at the red trendline.
The hourly 3C chart showed big distribution into the highs made late last month-leaks? Probably.
As for a trade, the trend channel is set to 5-days, that's what holds the trend in HSBC or HBC rather. So a stop around the $57.50 area or so and I'd prefer a limit order (not on the books-mental only) under the red trendline under $53 which is a technical break of the trend using my trend channel. I think it's a decent looking short trade, it'll probably bounce off support, but the stop should be wide enough to handle volatility. You could always phase into the trade on a bounce and the limit break to get a better average position.
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