Technical Pulse: HP Inc. September 21, 2022 503

 

HP Inc (NYSE: HPQ) A potential bullish reversal to the upside to retest the downtrend channel resistance as:   

 

  1. The formation of a hanging man candlestick on 20 September at the confluence of triple bottom and downtrend channel support area of 26.00-27.30 points towards a bullish upside.
  2. Bullish divergence was also observed where price made a lower low towards the support area, while the Relative Strength Index (RSI) technical indicator made a higher low. This discrepancy points to a bullish upside as momentum is picking up despite the bearish price action.
  3. Price could reach the resistance level at 30.70 which is confluence of the downtrend channel resistance and 50% Fibonacci retracement level resistance, with the swing high of 35.32 and swing low of 26.09 as points of reference.

 

 

*Expected timeline of the trade is 13 weeks from the date of report issuance.

 

CHART LEGEND

 

Red box = Resistance zone

Green box = Support zone

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About the author

Profile photo of Zane Aw

Zane Aw
Technical Analyst
PSR

I analyze the stock market and conduct technical analysis to provide investment recommendations. I look forward to having a conversation with you in our in-house seminars and presentations to identify good risk-reward trading strategies together. I graduated from Nanyang Technological University with a Bachelor of Accountancy (Honours).

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