HP Could Be Breaking Down
PC maker HP has held its ground all year as the technology sector tumbled, and now it too may be coming under pressure.
The main pattern on today’s chart is support at $34. HPQ gapped above this level following a strong quarterly report in late November. It bounced there in January, March and late May but never had a daily close below it.
This week, the stock closed below $34 not once -- but three times. Has a breakdown begun?
Second, prices also slid below the 200-day simple moving average (SMA) for the first time since October. That may suggest the longer-term trend is fading.
Finally you have the macro backdrop. While earnings have been strong and Warren Buffett recently added HPQ to his holdings, the Federal Reserve’s efforts to slow the economy could hurt PC demand.
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Investing involves risks. Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options, futures, or digital assets); therefore, you should not invest or risk money that you cannot afford to lose. Before trading any asset class, first read the relevant risk disclosure statements on the Important Documents page, found here: https://www.tradestation.com/important-information.
The main pattern on today’s chart is support at $34. HPQ gapped above this level following a strong quarterly report in late November. It bounced there in January, March and late May but never had a daily close below it.
This week, the stock closed below $34 not once -- but three times. Has a breakdown begun?
Second, prices also slid below the 200-day simple moving average (SMA) for the first time since October. That may suggest the longer-term trend is fading.
Finally you have the macro backdrop. While earnings have been strong and Warren Buffett recently added HPQ to his holdings, the Federal Reserve’s efforts to slow the economy could hurt PC demand.
TradeStation has, for decades, advanced the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
Important Information
TradeStation Securities, Inc., TradeStation Crypto, Inc., and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., all operating, and providing products and services, under the TradeStation brand and trademark. You Can Trade, Inc. is also a wholly owned subsidiary of TradeStation Group, Inc., operating under its own brand and trademarks. TradeStation Crypto, Inc. offers to self-directed investors and traders cryptocurrency brokerage services. It is neither licensed with the SEC or the CFTC nor is it a Member of NFA. When applying for, or purchasing, accounts, subscriptions, products, and services, it is important that you know which company you will be dealing with. Please click here for further important information explaining what this means.
This content is for informational and educational purposes only. This is not a recommendation regarding any investment or investment strategy. Any opinions expressed herein are those of the author and do not represent the views or opinions of TradeStation or any of its affiliates.
Investing involves risks. Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options, futures, or digital assets); therefore, you should not invest or risk money that you cannot afford to lose. Before trading any asset class, first read the relevant risk disclosure statements on the Important Documents page, found here: https://www.tradestation.com/important-information.
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