NYSE:HPQ may be ready to breakout.

Our stock screener has identified HP INC (NYSE:HPQ) as a potential breakout candidate. This technical breakout setup pattern occurs when the stock consolidates after a strong uptrend. While the actual breakout is uncertain, it may be worth keeping an eye on NYSE:HPQ.

Technical analysis of NYSE:HPQ

ChartMill utilizes a proprietary algorithm to assign a Technical Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of technical indicators and properties.

We assign a technical rating of 7 out of 10 to HPQ. This is due to a decent performance in both the short and medium term time frames. Compared to the overall market, HPQ is only an average performer.

• Both the short term and long term trends are positive. This is a very positive sign.
• HPQ is currently trading in the upper part of its 52 week range. The S&P500 Index is also trading in the upper part of its 52 week range, so HPQ is performing more or less in line with the market.
• HPQ is currently showing a bull flag pattern! A bull flag pattern occurs when prices pull back slightly after a strong rise up. This may be a nice opportunity for an entry.
• When comparing the performance of all stocks over the past year, HPQ turns out to be only a medium performer in the overall market: it outperformed 66% of all stocks.
• HPQ is an average performer in the Technology Hardware, Storage & Peripherals industry, it outperforms 57% of 34 stocks in the same industry.
• In the last month HPQ has a been trading in a tight range between 32.15 and 33.90.

Check the latest full technical report of HPQ for a complete technical analysis.

Looking at the Setup

Besides the Technical Rating, ChartMill assigns a Setup Rating to every stock to determine the degree of consolidation. This rating, ranging from 0 to 10, is updated daily and evaluates various short-term technical indicators. NYSE:HPQ currently holds a 9 as its setup rating, suggesting a particular level of consolidation in the stock.

Besides having an excellent technical rating, HPQ also presents a decent setup pattern. Prices have been consolidating lately. There is a resistance zone just above the current price starting at 33.08. Right above this resistance zone may be a good entry point. We notice that large players showed an interest for HPQ in the last couple of days, which is a good sign. Very recently a Pocket Pivot signal was observed. This is another positive sign.

How to trade NYSE:HPQ?

For a potential trade one would typically wait until the stock breaks out of the consolidation zone to enter the stock and it could be sold again for a loss when it would fall back below the zone.

Of course, there are many ways to trade or not trade NYSE:HPQ and this article should in no way be interpreted as trading advice. The article is purely based on an automated technical analysis and just points out the technical observations. Always make your own analysis and trade at your own responsibility.

More breakout setups can be found in our Breakout screener.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.