 |
| www.freestockcharts.com |
HPQ is coming up on the 61.8% fib resistance. A few things could happen here. Price could break through with no issue and move up to the 100% retrace (30.00). Price could retreat temporarily down to the 50% (20.60) or the 38.2% (18.45). Lastly, the up trend could reverse entirely which would see HPQ going back to 11.00 or so. This won't generate a buy signal until it breaks the 61.8% level. You might have noticed that the 161.8% level (41.75) marks resistance from back in May of 2012. I'm going to call that the long term price target, with the short term being the 100% retrace (30.00). Some hypothetical trades below.
Entry: 24.00, 25.75 (Above the 61.8% retrace level)
TP: 29.85, 41.00 (Below the price targets)
SL: 20.20, 17.00 (Below the 50% and under the gap from February 2013)
I like the long term prospects for this one, the entries and stop losses are little messy in my opinion but I think they'll work out OK. Time frame for the short term trade is less than four months, though a strong pullback could make it closer to six months. The longer term trade could take a year or so.
If you have a stock you want analyzed leave it in the comments.
Do your own research before taking any position. I don't have a position in HPQ nor will I be taking one in the next 72 hours.
No comments:
Post a Comment