Computer maker HP Inc. (HPQ) has returned to the Green Favored Zone of the SIA S&P 500 Index Report, continuing a climb up out of the red zone that started a few weeks ago. On the back of a positive earnings report, HPQ jumped 119 positions on Wednesday to 59th place and it is up 204 spots in the last month.
A breakaway gap on a big surge in volume for HP Inc. (HPQ) has driven its shares up through its April peak to a new all-time high. The technical picture for HPQ had already been improving in recent weeks with the shares snapping out of a downtrend, breaking out of a bullish Falling Wedge pattern, regaining their 50-day average and finally, completing a bullish Ascending Triangle. Combined these signals confirm that accumulation has resumed in a big way.
Initial upside resistance may appear near the $40.00 round number with measured moves from recent ranges suggesting next tests after that possible near $44.50. Initial support appears near $34.00 then $32.50 the boundaries of Wednesday’s breakaway gap.
HP Inc. (HPQ) started this year off in rally mode, staging a strong High Pole advance. After peaking in May, the shares drifted downward into October but did not trigger a bearish high pole warning, indicating that it was more of a consolidation phase than a downturn. In recent weeks, accumulation has resumed with the shares completing a bullish Double Top and two bullish Spread Double Top breakouts. Currently the shares are bumping up against their previous peak near $35.60 on the 2% chart and have already broken out on a 1% chart.
Based on horizontal counts, next potential resistance appears near $39.30 and $40.90 around the $40.00 round number. Initial support appears near $32.25 based on a 3-box reversal.
With a bullish SMAX score of 9, HPQ is exhibiting strength against the asset classes.
Disclaimer: SIACharts Inc. specifically represents that it does not give investment advice or advocate the purchase or sale of any security or investment whatsoever. This information has been prepared without regard to any particular investors investment objectives, financial situation, and needs. None of the information contained in this document constitutes an offer to sell or the solicitation of an offer to buy any security or other investment or an offer to provide investment services of any kind. As such, advisors and their clients should not act on any recommendation (express or implied) or information in this report without obtaining specific advice in relation to their accounts and should not rely on information herein as the primary basis for their investment decisions. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources, believed to be reliable. SIACharts Inc. nor its third party content providers make any representations or warranties or take any responsibility as to the accuracy or completeness of any recommendation or information contained herein and shall not be liable for any errors, inaccuracies or delays in content, or for any actions taken in reliance thereon. Any statements nonfactual in nature constitute only current opinions, which are subject to change without notice.