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.
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