HPQ runs into sellers again around 22.41
HP Inc. (HPQ) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
HPQ ended the week 2.95% higher at 22.37 after gaining $0.15 (0.68%) today, slightly outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. The bulls were in full control today, moving the market higher throughout the whole session. 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 Feb 14, 2020):
Friday's trading range has been $0.17 (0.76%), that's below the last trading month's daily average range of $0.35. 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. Prices continued to consolidate within a tight trading range between 22.14 and 22.53 where it has been caught now for the last three trading days.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns. The last time a White Candle showed up on Wednesday, HPQ actually lost -1.16% on the following trading day.
Prices are trading close to the key technical support level at 22.20 (S1). After having been unable to move above 22.39 in the prior session, the stock ran into sellers again around the same price level today, failing to move higher than 22.41.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might speed up should prices move above the close-by swing high at 22.53 where further buy stops could get triggered. Selling might accelerate should prices move below the nearby swing low at 22.14 where further sell stops could get activated.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for HP. Out of 677 times, HPQ closed higher 50.96% 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 56.28% with an average market move of 0.33%.