HPQ stuck within tight trading range
HP Inc. (HPQ) Technical Analysis Report for Jan 14, 2020 | by Techniquant Editorial Team
HPQ ended Tuesday at 21.40 losing $0.06 (-0.28%) on high volume, slightly underperforming the S&P 500 (-0.15%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (HPQ as at Jan 14, 2020):
Tuesday's trading range has been $0.28 (1.3%), that's slightly above the last trading month's daily average range of $0.26. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for HPQ. Prices continued to consolidate within a tight trading range between 21.26 and 21.55 where it has been caught now for the last three trading days.
Regardless of a strong opening HP closed below the prior day's open and close, forming a bearish Engulfing Candle.
Prices are trading close to the key technical resistance level at 21.55 (R1). The stock ran into sellers again today around 21.54 for the third trading day in a row after having found sellers at 21.55 in the previous session and at 21.54 two days ago. The last time this happened on November 19, 2019, HPQ lost -2.04% on the following trading day.
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and might now be heading back down towards the mean of the Bollinger Bands at 20.72.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the nearby swing high at 21.55 where further buy stops might get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Engulfing Candle" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for HP. Out of 95 times, HPQ closed higher 58.95% 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 62.11% with an average market move of 0.89%.