Stock Chart of the Day: HPQ
One of the dogs that has been barking as of late is HPQ. After announcing stellar earnings and raising guidance on February 22nd, it broke out of the major resistance at 17.15 and has not looked back.
However, during the last three of four trading sessions, the issue has topped out just under the strong psychological resistance of 20. Even in today’s furious rally, it was unable to close above 20. With today’s close at 19.77, it will have a running start at the institutional sellers perched at that level and it may be taken out. Above that level, there is only minor resistance at the July 2012 high of 20.42 and major resistance at the June 2012 high of 21.61. If you’re looking to protect profits on the long side (or trying to breakeven from a wayward purchase) a break below the double bottom from Monday (19.03) and Tuesday (19.05) may be a reason to exit the issue.
Support and resistance levels for tomorrow’s trade:
|19.83-.92||********||3 of 4 previous highs|
|19.77||CLOSE||19.79 – Tuesday close|
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