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Hewlett Packard seems to be on the verge of a possible
turnaround after reaching a major lower support that was tested back in 2002;
being a level which $HPQ concluded the aftermath of the dot-com bubble’s burst.
$HPQ chart indicates the stock being on an uptrend following a series of higher
highs and higher lows since it hit grounds back in late 2012. I think $HPQ might see a much stronger accumulation
in the mid-term, given the fact it broke a lower channel extension that has
served as a trend reversal S&R for about 5 years. At this point we should
look further onto the $25.50~26.00 dollar mark, being the next most eminent resistance for $HPQ. The Volume by Price indicator
reflects the volume of a specific price range. A large Volume by Price bar
suggests a strong historical interest for the security at a given price range;
it should be seen as a possible
resistance in this case. If a breakout follows through, the price target would
be $28.50, subsequently following $30.00
- $33.00 - $37.50
and so on; considering a best-case scenario. $HPQ is still more than 54% down from 07’ and
10’ double top peaks, making room for great returns if the turnaround gains
momentum and the company regains market share.
If interested
on a nice analysis about the company’s fundamentals, I recommend this article: http://seekingalpha.com/article/1485451-hewlett-packard-is-this-a-turnaround
Alexander Schachter
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