Looking at the technical picture of the Hewlett-Packard stock (NYSE: HPQ) on our daily chart, we can see that after reversing sharply higher around mid-October, the share price continues to form higher lows and higher highs. At the same time the stock is trading above a short-term tentative upside support line drawn from the low of October 13th. If HPQ stays above that line, we will continue aiming higher.
Another push through the 32.27 barrier may attract more bulls into the field, possibly leading the stock further north. We could then target the 33.18 hurdle, marked by the high of May 14th, where a temporary hold-up might occur. If HPQ continues to trade somewhere above the aforementioned upside line, another upmove could be possible. If this time the stock is able to overcome the 33.18 obstacle, this may help push the share price further north. That’s when we will aim for the 33.64 obstacle, or even for the 34.57 level, marked by the high of May 11th.
The RSI is currently pointing higher, while sitting above 50. The MACD started pointing to the upside, remains above zero, but runs slightly below the trigger line. Overall, the two oscillators show positive price momentum, which supports the above discussed scenario.
Alternatively, if the previously mentioned upside line breaks and the share price drops below the 30.65 hurdle, marked by the low of last week, that could increase the stock’s chances of drifting further south, as some buyers might exit the arena. HPQ could fall to the 29.65 zone, or even to the 28.50 area, marked by the low of October 20th.
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