HPQ pushes through Thursday's high
HP Inc. (HPQ) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, HPQ ended the month 0.86% higher at 17.58 after gaining $0.34 (1.97%) today, strongly outperforming the S&P 500 (0.77%). Closing above Thursday's high at 17.30, the share confirmed its breakout through the previous session high after trading up to $0.33 above it intraday.
Daily Candlestick Chart (HPQ as at Jul 31, 2020):
Friday's trading range has been $0.48 (2.78%), that's slightly below the last trading month's daily average range of $0.57. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for HPQ.
One bullish candlestick pattern matches today's price action, the White Candle.
The stock managed to close back above the 20-day moving average at 17.34. When this moving average was crossed above the last time on July 10th, HPQ gained 0.53% on the following trading day.
Though 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 nearby swing high at 17.87 where further buy stops might get activated. As prices are trading close to July's high at 18.36, upside momentum could accelerate should HP mark new highs for the month.
Among the eight 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 136 times, HPQ closed higher 55.15% 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 57.35% with an average market move of 0.82%.