HPQ closes lower for the 2nd day in a row
HP Inc. (HPQ) Technical Analysis Report for Jan 22, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, HPQ ended Wednesday at 21.93 losing $0.03 (-0.14%), slightly underperforming the S&P 500 (0.03%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (HPQ as at Jan 22, 2020):
Wednesday's trading range has been $0.43 (1.96%), that's far above the last trading month's daily average range of $0.28. 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.
Two candlestick patterns are matching today's price action, the Bullish Hikkake Pattern which is known as bullish pattern and one bearish pattern, the Hanging Man. The last time a Bullish Hikkake Pattern showed up on December 3, 2019, HPQ gained 2.09% on the following trading day.
Prices are trading close to the key technical resistance level at 21.98 (R1). The stock ran into sellers again today around 21.96 for the third trading day in a row after having found sellers at 21.97 in the prior session and at 21.98 two days ago.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could speed up should prices move above the close-by swing high at 21.98 where further buy stops might get activated.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to previous two Highs" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for HP. Out of 145 times, HPQ closed higher 56.55% 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 55.86% with an average market move of 0.44%.