HPQ runs into sellers again around 22.20
HP Inc. (HPQ) Technical Analysis Report for Jan 24, 2020 | by Techniquant Editorial Team
HPQ finished the week 0.05% higher at 21.98 after losing $0.12 (-0.54%) today, but still slightly outperforming the S&P 500 (-0.9%). 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 24, 2020):
Friday's trading range has been $0.40 (1.8%), that's far above the last trading month's daily average range of $0.29. 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.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bearish Outside Bar. Additionally, one bearish candlestick pattern matches today's price action, the Dark Cloud Cover. The last time a Dark Cloud Cover showed up on May 2, 2018, HPQ lost -1.07% on the following trading day.
After having been unable to move above 22.17 in the prior session, the market ran into sellers again around the same price level today, missing to move higher than 22.20.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Dark Cloud Cover" stand out. Its common bearish interpretation has been confirmed for HP. Out of 7 times, HPQ closed lower 71.43% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 57.14% with an average market move of -3.69%.