HPQ closes below its opening price unable to hold early session gains
HP Inc. (HPQ) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
HPQ finished Wednesday at 19.41 gaining $0.15 (0.78%), significantly outperforming the S&P 500 (-0.46%). Trading $0.32 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (HPQ as at Sep 16, 2020):
Wednesday's trading range has been $0.38 (1.96%), that's below the last trading month's daily average range of $0.57. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for HPQ. Prices continued to consolidate within a tight trading range between 18.98 and 19.84 where it has been caught now for the whole last trading week.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Additionally, one bearish candlestick pattern matches today's price action, the Bearish Spinning Top. The last time a Bearish Spinning Top showed up on August 5th, HPQ actually gained 1.67% on the following trading day.
After having been unable to move above 19.76 in the previous session, the share ran into sellers again around the same price level today, failing to move higher than 19.75.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the close-by swing high at 19.76 where further buy stops could get activated. Selling might speed up should prices move below the nearby swing low at 19.25 where further sell stops could get triggered. Further buying might move prices higher should the market test August's close-by high at 20.18.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Spinning Top" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for HP. Out of 239 times, HPQ closed higher 49.37% 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 59.83% with an average market move of 0.83%.