HPQ dominated by bulls lifting the market higher throughout the day
HP Inc. (HPQ) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
HPQ finished Thursday at 17.94 surging $2.56 (16.64%), significantly outperforming the S&P 500 (6.24%). This is the biggest single-day gain in over 19 years. The last time we've seen such an unusually strong single-day gain on March 2nd, HPQ actually lost -5.08% on the following trading day. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 16.80, the market confirmed its breakout through the previous session high after trading up to $1.41 above it intraday.
Daily Candlestick Chart (HPQ as at Mar 26, 2020):
Thursday's trading range has been $2.90 (18.67%), that's far above the last trading month's daily average range of $1.46. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for HPQ.
One bullish candlestick pattern matches today's price action, the White Candle.
The share managed to close above the 20-day moving average at 17.68 for the first time since February 26th. Prices are trading close to the key technical resistance level at 18.62 (R1).
HP shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 20" stand out. Its common bullish interpretation has been confirmed for HP. Out of 129 times, HPQ closed higher 54.26% 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 58.14% with an average market move of 0.95%.