HPQ unable to break through key resistance level
HP Inc. (HPQ) Technical Analysis Report for Jul 13, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, HPQ finished Monday at 17.08 edging higher $0.09 (0.53%), significantly outperforming the S&P 500 (-0.94%). Trading $0.44 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (HPQ as at Jul 13, 2020):
Monday's trading range has been $0.65 (3.79%), that's slightly above the last trading month's daily average range of $0.64. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for HPQ.
Two candlestick patterns are matching today's price action, the Bearish Spinning Top and the Shooting Star which are both known as bearish patterns.
Unable to break through the key technical resistance level at 17.48 (R1), HP closed below it after spiking up to 17.61 earlier during the day. The failure to close above the resistance might increase that levels importance going forward. When prices bounced off a significant resistance level the last time on July 6th, HPQ lost -4.75% on the following trading day.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying could speed up should prices move above the close-by swing high at 17.63 where further buy stops might get activated.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Shooting Star" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for HP. Out of 59 times, HPQ closed higher 55.93% 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 54.24% with an average market move of 0.88%.