HP Inc. (HPQ/NYSE): general review
04 April 2018, 12:24
| Scenario | |
|---|---|
| Timeframe | Intraday |
| Recommendation | SELL STOP |
| Entry Point | 20.90 |
| Take Profit | 20.50, 20.00, 19.50 |
| Stop Loss | 21.50 |
| Key Levels | 19.40, 20.25, 21.00, 21.75, 22.50, 23.00 |
| Alternative scenario | |
|---|---|
| Recommendation | BUY STOP |
| Entry Point | 21.80 |
| Take Profit | 22.50, 23.00 |
| Stop Loss | 21.25 |
| Key Levels | 19.40, 20.25, 21.00, 21.75, 22.50, 23.00 |
Current trend
Since March 9, shares of HP Inc. are in a downtrend, losing more than 13.5%. A further drop by another USD 1.4 per share will lead to the renewal of the three-month low. Emitter's quotes show above-the-market correlation since the S&P 500 index has decreased by 6.1% since March 9.
In the light of the US tax reform, the HP's management expects an effective tax rate of 16%, instead of the previously announced forecast of 21-22%. Moreover, the company sees tax benefits of USD 0.1 per share in the financial year 2018.
Last week, HP Inc. share price decreased by 3.96%. S&P500 index went down by 1.75% during the same period.
Support and resistance
During the last two weeks "bearish" tendencies prevailed in the company's shares. At the moment, #HPQ shares are consolidating. The key trading range is 21.00-21.75. The emitter has the potential to further correction.
Indicators show the strength of the sellers: the price has consolidated below MA(50) and MA(200), and MACD is in the negative zone. Positions are to be opened from key levels.
Comparing company's multiplier with its competitors in the industry, we can say that #HPQ shares are neutral.
Support levels: 21.00, 20.25, 19.40.
Resistance levels: 21.75, 22.50, 23.00.
Trading tips
If the price consolidates below the support level of 21.00, #HPQ quotes are expected to decline further. Potential profits should be locked in by orders at 20.50, 20.00 and 19.50. Stop-loss will be placed at 21.50.
If the price consolidates above 21.75, one should consider buying the company's shares. The moving potential is aimed at the area of 22.50-23.00. Stop-loss should be placed at 21.25.
Implementation time: 3 days.
Since March 9, shares of HP Inc. are in a downtrend, losing more than 13.5%. A further drop by another USD 1.4 per share will lead to the renewal of the three-month low. Emitter's quotes show above-the-market correlation since the S&P 500 index has decreased by 6.1% since March 9.
In the light of the US tax reform, the HP's management expects an effective tax rate of 16%, instead of the previously announced forecast of 21-22%. Moreover, the company sees tax benefits of USD 0.1 per share in the financial year 2018.
Last week, HP Inc. share price decreased by 3.96%. S&P500 index went down by 1.75% during the same period.
Support and resistance
During the last two weeks "bearish" tendencies prevailed in the company's shares. At the moment, #HPQ shares are consolidating. The key trading range is 21.00-21.75. The emitter has the potential to further correction.
Indicators show the strength of the sellers: the price has consolidated below MA(50) and MA(200), and MACD is in the negative zone. Positions are to be opened from key levels.
Comparing company's multiplier with its competitors in the industry, we can say that #HPQ shares are neutral.
Support levels: 21.00, 20.25, 19.40.
Resistance levels: 21.75, 22.50, 23.00.
Trading tips
If the price consolidates below the support level of 21.00, #HPQ quotes are expected to decline further. Potential profits should be locked in by orders at 20.50, 20.00 and 19.50. Stop-loss will be placed at 21.50.
If the price consolidates above 21.75, one should consider buying the company's shares. The moving potential is aimed at the area of 22.50-23.00. Stop-loss should be placed at 21.25.
Implementation time: 3 days.
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