Stock market: HP can’t recover
Trade ideas
SELL 18.50; TP 17.70; SL 18.70
BUY 19.35; TP1 20.00; TP2 20.70; SL 19.15
The shares of HP lost more than 10% in February. It was reasonable to expect that the first week of March would bring some relief. However, that didn’t happen. Last week the price moved even lower dropping to the minimal levels since the end of August. As you may guess, the reason for the decline was a disappointing earnings report that showed the company’s printing segment struggling to grow amid heightened competition.
All in all the stock has become rather cheap and may attract new demand. However, the weekly chart still shows the scope of the decline to 200-week MA at 17.65. This level will definitely limit the downside. At the same time, to test resistance at 20.00 and 20.70, the price needs to rise above 2018 lows at 19.30.
