HPQ Emerges from Huge Base Pattern

Below is what we discussed yesterday.

Helped by the Barclays upgrade to OW from EW, and a raise in its target price to 38 from 33, Hewlett-Packard Company (HPQ) again appears poised for upside acceleration from atop its massive 3-year accumulation pattern. A climb above its Feb 21 high at 30.71 should trigger a run at 32.50 quickly. Only a decline that breaks the prior pullback low at 28.75 will compromise the timing of the anticipate next upleg. MJP 3/18/14

It's interesting that HPQ is up 2.6% today despite the lack of catalytic type news.

Could it be that the price structure is emerging from its near 3-year base pattern, and that a wave of short-covering and new buying are impacting HPQ?

Such is my assessment of the price action here that HPQ now is in the grasp of a powerful technical move that has the blessing of improving and optimistic Wall Street fundamental research.

Next target zone is 32.50-34.00, on the way to 37.50 thereafter.


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