HPQ closes higher for the 2nd day in a row
HP Inc. (HPQ) Technical Analysis Report for Jan 16, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, HPQ finished Thursday at 21.67 surging $0.25 (1.17%), slightly outperforming the S&P 500 (0.84%). Today's close at 21.67 marks the highest recorded closing price since February 27, 2019. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 21.61, HP confirmed its breakout through the prior session high after trading up to $0.06 above it intraday.
Daily Candlestick Chart (HPQ as at Jan 16, 2020):
Thursday's trading range has been $0.38 (1.77%), that's far above 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 slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for HPQ.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bullish Outside Bar. Additionally, two candlestick patterns are matching today's price action, the Bullish Closing Marubozu and the White Candle which are both known as bullish patterns.
The market found buyers again today around 21.29 for the third trading day in a row after having found demand at 21.31 in the previous session and at 21.26 two days ago. The last time this happened on January 8th, HPQ gained 1.48% on the following trading day.
Crossing above the upper Bollinger Band for the first time since Monday, prices have shown unusually strong upward momentum in the short-term. This could either indicate a potential buying climax after which prices might head back down towards the mean of the Bollinger Bands at 20.83 or signal the beginning of a strong momentum breakout leading to even higher prices.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the 14 market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Outside Bar" stand out. Its common bullish interpretation has been confirmed for HP. Out of 102 times, HPQ closed higher 57.84% 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 59.80% with an average market move of 0.54%.