Technical Insights for HP INC (NYSE:HPQ): Is a Breakout Imminent?

HP INC (NYSE:HPQ) was identified as a Technical Breakout Setup Pattern by our stockscreener. Such a pattern occurs when we see a pause in a strong uptrend: after a strong rise the stock is consolidating a bit and at some point the trend may be continued. Whether this actually happens can not be predicted of course, but it may be a good idea to keep and eye on NYSE:HPQ.

Insights from Technical Analysis

ChartMill assigns a Technical Rating to every stock. This score ranges from 0 to 10 and is updated daily. The score is determined by evaluating multiple technical indicators and properties.

We assign a technical rating of 8 out of 10 to HPQ. This is due to a consistent performance in both the short and longer term time frames. Also compared to the overall market, HPQ is showing a nice and steady performance.

• The long term trend is positive and the short term trend is neutral. The long term trend may just continue or reversal may be around the corner!
• Looking at the yearly performance, HPQ did better than 71% of all other stocks. On top of that, HPQ also shows a nice and consistent pattern of rising prices.
• HPQ is currently trading in the upper part of its 52 week range. The S&P500 Index however is currently trading near a new high, so HPQ is lagging the market slightly.
• In the last month HPQ has a been trading in the 35.39 - 38.67 range, which is quite wide. It is currently trading in the middle of this range where prices have been consolidating recently, this may present a good entry opportunity, but some resistance may be present above.
• HPQ is an average performer in the Technology Hardware, Storage & Peripherals industry, it outperforms 58% of 32 stocks in the same industry.

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

How do we evaluate the setup for NYSE:HPQ?

In addition to the Technical Rating, ChartMill provides a Setup Rating for each stock. This rating, ranging from 0 to 10, assesses the level of consolidation in the stock based on multiple short-term technical indicators. Currently, NYSE:HPQ has a 8 as its setup rating, indicating its current consolidation status.

Besides having an excellent technical rating, HPQ also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. A pullback is taking place, which may present a nice opportunity for an entry. There is a support zone below the current price at 36.17, a Stop Loss order could be placed below this zone. Very recently a Pocket Pivot signal was observed. This is another positive sign.

Trading setups like NYSE:HPQ

One way to play this would be to wait for the actual breakout to happen and buy when the stock breaks out above the current consolidation zone. A possible place for a stop loss would be below this zone.

This article should in no way be interpreted as trading advice. You should always make your own analysis and trade or not trade based on your own observations and style. The article is based purely on some technical observations.

Our Breakout screener lists more breakout setups and is updated daily.

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.