Stock of the day: HP
11 July 2023
Today, we'll be looking at the recent bullish performance of Hewlett-Packard (HP). Since June 23rd, the stock has been on a significant uptrend, with a notable bullish session just yesterday. This positive movement has been complemented by the broader market's upward momentum. However, we're still waiting for a crucial long-term buy signal.
HP's price has been moving subtly upward since September 2022 within a rising wedge pattern denoted by red lines. This pattern recently experienced an accelerated bullish thrust, with the emergence of a dynamic blue support line. Yesterday's trading session concluded with the price testing the upper boundary of the wedge, indicating a potential turning point in the near future.
In the meantime, HP's price managed to break through a critical horizontal resistance at $31, marked by an orange line. This breakthrough sets the stage for a possible bullish breakout, which is our base scenario for the next few days.
The pivotal moment would be a closing price today above the wedge's upper line. Such a move would provide a solid buy signal. However, if the price closes below the orange area, it could indicate a false breakout and potentially trigger a bearish correction or consolidation within the wedge pattern.