HP Inc. (HPQ/NYSE): general analysis
04 September 2018, 13:03
| Scenario | |
|---|---|
| Timeframe | Intraday |
| Recommendation | BUY STOP |
| Entry Point | 25.30 |
| Take Profit | 25.75, 25.90 |
| Stop Loss | 24.85 |
| Key Levels | 23.25, 23.80, 24.25, 24.75, 25.25 |
| Alternative scenario | |
|---|---|
| Recommendation | SELL STOP |
| Entry Point | 24.20 |
| Take Profit | 23.50, 23.00 |
| Stop Loss | 24.75 |
| Key Levels | 23.25, 23.80, 24.25, 24.75, 25.25 |
Current trend
Shares of HP Inc. are trading near the 52-week high, renewed on August 29. In addition to a 20% increase in earnings per share for the past four quarters with results higher than market expectations, shares of HP Inc. are strengthening due to the growing return on equity through the repurchase of shares and dividends. In the third quarter, the company paid the shareholders $919 million. In the financial year 2018, the management of HP Inc. plans to send to the remuneration of shareholders 50–75% of the free cash flow.
During the last week, HP Inc. increased by 2.07% against the growth of S&P 500 by 0.93%.
Support and resistance
Last week, the instrument stepped off the year’s highs. #HPQ ended the trading session in the negative zone. At the moment, the technical picture is ambiguous. The company's shares are consolidating. The key trading range is 24.25–24.75. Correction is not excluded in the near future. Indicators do not give a clear signal: the price was fixed above MA (50) and MA (200); MACD is near the zero line. It is better to open the positions from the key levels.
The comparative analysis of the indicators of the company and its competitors suggests that the shares are underpriced.
Resistance levels: 24.75, 25.25.
Support levels: 24.25, 23.80, 23.25.
Trading tips
Long positions can be opened after the price is set above the level of 25.25. The closing of the profitable positions is possible at the levels of 25.75, 25.00 and 25.50. Stop loss is 24.85.
Short positions can be opened after the price is fixed below the level of 24.25 with the targets at 23.50–23.00. Stop loss is 24.75.
Implementation period: 3 days.
Shares of HP Inc. are trading near the 52-week high, renewed on August 29. In addition to a 20% increase in earnings per share for the past four quarters with results higher than market expectations, shares of HP Inc. are strengthening due to the growing return on equity through the repurchase of shares and dividends. In the third quarter, the company paid the shareholders $919 million. In the financial year 2018, the management of HP Inc. plans to send to the remuneration of shareholders 50–75% of the free cash flow.
During the last week, HP Inc. increased by 2.07% against the growth of S&P 500 by 0.93%.
Support and resistance
Last week, the instrument stepped off the year’s highs. #HPQ ended the trading session in the negative zone. At the moment, the technical picture is ambiguous. The company's shares are consolidating. The key trading range is 24.25–24.75. Correction is not excluded in the near future. Indicators do not give a clear signal: the price was fixed above MA (50) and MA (200); MACD is near the zero line. It is better to open the positions from the key levels.
The comparative analysis of the indicators of the company and its competitors suggests that the shares are underpriced.
Resistance levels: 24.75, 25.25.
Support levels: 24.25, 23.80, 23.25.
Trading tips
Long positions can be opened after the price is set above the level of 25.25. The closing of the profitable positions is possible at the levels of 25.75, 25.00 and 25.50. Stop loss is 24.85.
Short positions can be opened after the price is fixed below the level of 24.25 with the targets at 23.50–23.00. Stop loss is 24.75.
Implementation period: 3 days.
No comments:
Write comments