HPQ runs into sellers again around 21.97
HP Inc. (HPQ) Technical Analysis Report for Jan 21, 2020 | by Techniquant Editorial Team
HPQ ended Tuesday at 21.96 edging lower $0.01 (-0.05%), but still slightly outperforming the S&P 500 (-0.27%). Trading up to $0.15 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. 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 21, 2020):
Tuesday's trading range has been $0.20 (0.91%), that's below the last trading month's daily average range of $0.28. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for HPQ.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Additionally, one bearish candlestick pattern matches today's price action, the Hanging Man. The last time a Hanging Man showed up on November 26, 2019, HPQ lost -1.35% on the following trading day.
Prices are trading close to the key technical resistance level at 21.98 (R1). After having been unable to move above 21.98 in the previous session, HP ran into sellers again around the same price level today, failing to move higher than 21.97.
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and could now be heading back down towards the mean of the Bollinger Bands at 21.00.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the close-by swing high at 21.98 where further buy stops could get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for HP. Out of 766 times, HPQ closed higher 51.70% 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 54.83% with an average market move of 0.26%.