HPQ Unwittingly Follows Our Intermediate-Term Technical Script

Below is what we discussed three weeks ago, when Hewlett-Packard Company (HPQ) was in the midst of a significant correction that established an important low last Thursday, Oct 2, at 33.93 (an 11% correction off of the July 4 high).

Today's news that HPQ will split into two companies has goosed the stock price to a pre-open high at 38.21 so far this morning, which means that the upmove off of last Thursday's corrective low already is retesting the Sept high.

If my big picture work remains reasonably accurate, and HPQ is heading for 40.00-42.00 next, I need to be looking for my next entry into a new long position, preferably into pullback weakness into the 36.25/00 Buy Window. MJP 10/06/14

Let's be aware that on 9/04/14-- along with the major market indices-- HPQ a 40-month recovery high at 38.25. It has since turned down sharply to 36.25, or by more than 5%, and is heading for a probe of its 2014 support line at 35.25. My intermediate-term work argues that HPQ still has unfinished business on the upside into the 40.00-42.00 area after the in-progress correction runs its course. My near-term work points to the 34.80 to 33.30 target buy window. As the price action unfolds during forthcoming sessions, I should be able to further fine tune the target buy zone ahead of the next upleg off of HPQ's 2011-2014 base pattern. MJP 9/15/14

  • Action-Oriented Trade Set-Ups in Stocks & ETFs
  • Macro Analysis of the Broader Markets
  • Detailed Technical Guidance for each Trading Idea
  • Live Interaction w/ Mike & Our Member Community
  • And Much, Much More!
Join Now! - Special Offer!
Veteran Wall Street analyst and financial author, Mike provides detailed and timely analysis and trade set-ups on a range of markets. Read more...

Have Mike's “Out Front” morning analysis delivered FREE to your email inbox twice weekly!