HPQ closes higher for the 6th day in a row
HP Inc. (HPQ) Technical Analysis Report for Jan 13, 2020 | by Techniquant Editorial Team
Moving higher for the 6th day in a row, HPQ finished Monday at 21.46 gaining $0.08 (0.37%), slightly underperforming the S&P 500 (0.7%). Today's close at 21.46 marks the highest recorded closing price since July 30, 2019. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (HPQ as at Jan 13, 2020):
Monday's trading range has been $0.20 (0.93%), that's below the last trading month's daily average range of $0.26. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for HPQ.
Three candlestick patterns are matching today's price action, the Tweezer Top which is known as bullish pattern, one bearish pattern, the Northern Doji and one neutral pattern, the Doji.
After having been unable to move above 21.54 in the prior session, the market ran into sellers again around the same price level today, failing to move higher than 21.54. The last time this happened on January 7th, HPQ actually gained 1.31% on the following trading day.
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day although might signal a potential change in momentum that could lead to a correction back down towards the center of the Bollinger Bands at 20.67.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "6 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for HP. Out of 11 times, HPQ closed higher 54.55% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 72.73% with an average market move of 0.73%.