Tech Stock Faces Off With Bearish Trendline

Patrick Martin
0
In this article:

A week ago today, the shares of HP Inc (NYSE:HPQ) gapped higher amid reports of Xerox's (XRX) bid to take over HP is a cash-and-stock offer of $22 per share. Since then, however, the stock has cooled on news that the sale is facing some uncertainty -- and to make matters worse -- HPQ is sitting just below a historically bearish trendline.

In other words, the equity is within striking distance of its 200-day moving average. There have been two similar run-ups after a lengthy stretch below the trendline, defined for this study as having traded south of the moving average 60% of the time in the past two months and in eight of the last 10 trading days. After which, the shares averaged a one-month loss of 14.9% and were lower both times, per data from Schaeffer's Senior Quantitative Analyst Rocky White.

Daily Stock Chart HPQ
Daily Stock Chart HPQ

At last check, HPQ was trading at $19.47, so a similar 15% pullback would mean the $16.50 region is once more in play, and the stock's 11.8% month-to-date lead would be erased. Just below there sits its Oct. 10 two-year low of $15.93. Plus, heading into today's trading, the tech stock is firmly in overbought territory, per its 14-day Relative Strength Index (RSI) of 71, which further underscores a short-term breather is in the cards.

Should the stock once again backpedal, there's plenty of room aboard the bearish bandwagon, as only a slim 1.3% of HPQ's total available float is sold short. Options traders, on the other hand, appear to be targeting puts. Peak front-month open interest is found at the November 19.50 put, indicating options traders aren't banking on any more rallies from HPQ by this week's end, when the options expire.

Advertisement

Recommended Stories

  • Billionaire Bill Gates Has 51% of His Portfolio Invested in 2 Brilliant Stocks

    The Bill and Melinda Gates Foundation Trust outperformed the S&P 500 by a wide margin over the past three years, in part because of these two stocks.

  • Can I Use My RMDs to Transfer Money Into My Roth IRA?

    If you're taking a required minimum distribution from an IRA, 401(k) or other tax-deferred account and don't need the money to cover living expenses, where should you stash that unneeded cash? Investors now need to start taking RMDs at age 73 or, if they were born after 1960, at age 75. Depending on the balances of […] The post Can I Use My RMDs to Transfer Money Into My Roth IRA? appeared first on SmartReads by SmartAsset.

  • One More Day, One More Boeing Incident - Senegal Crash Adds to Troubles

    Boeing Co (NYSE: BA) continues to face challenges as a Boeing 737-300 aircraft crashed during takeoff at Senegal’s main airport on Thursday. Air Sénégal flight HC301, operated by Transair with 78 passengers, skidded off a runway before takeoff, injuring 11 people and bringing the facility to a halt. The Blaise Diagne airport said an investigation was underway to determine the cause of the accident, which occurred at around 0100 GM, reported Reuters. Boeing is already under regulatory scrutiny af

  • Ask an Advisor: Can a Nursing Home Take Our IRA? We Have a $100K IRA and a Trust to Protect Our Assets

    My wife and I are elderly. I have an individual retirement account (IRA) worth about $100,000, and we have a trust set up through our children to protect our assets. If one or both of us have to go into … Continue reading → The post Ask an Advisor: Can a Nursing Home ‘Take Our IRA?' My Wife and I Are Elderly. We Have a $100K IRA and a Trust to Protect Our Assets. appeared first on SmartAsset Blog.

  • Dave Ramsey Shares Three Rules For Buying A House

    In today's turbulent housing market, navigating the path to homeownership requires a more strategic approach than ever. With soaring prices and high interest rates, prospective buyers face myriad challenges. But despite the complexities, financial experts like Dave Ramsey offer valuable insights to guide homebuyers through the process. Ramsey shared three rules for buying a house in a May 6 post on X: 1. Be debt-free. 2. Keep enough money in an emergency fund to cover three to six months of hous

  • ‘Seriously Underwater’ Home Mortgages Tick Up Across the US

    (Bloomberg) -- Roughly one in 37 homes are now considered seriously underwater in the US and that share is much higher across a swath of southern states, according to data out Thursday.Most Read from BloombergMicrosoft’s Xbox Is Planning More Cuts After Studio ClosingsAmericans Are Racking Up ‘Phantom Debt’ That Wall Street Can’t Track‘Seriously Underwater’ Home Mortgages Tick Up Across the USArm Slides as Tepid Outlook Fuels Concerns Over AI SlowdownNationally, 2.7% of homes carried loan balanc

  • How Much Cash Can A $300,000 Annuity Generate For Me Each Month?

    Imagine having a reliable source of income you can count on throughout your retirement. That’s the promise of an annuity. These insurance products have been designed to turn your savings into a steady stream of monthly payments. They guarantee peace of mind and financial security in your golden years. Don't Miss: Are you rich? Here’s what Americans think you need to be considered wealthy. Can you guess how many Americans successfully retire with $1,000,000 saved? The percentage may shock you. An

  • Tesla punctuates layoffs with apparent hiring freeze

    Tesla appears to have followed up its recent layoffs with a company-wide hiring freeze. Only three positions remain open out of more than 3,000.

  • GigaCloud Technology Inc. (GCT) Q1 Earnings and Revenues Surpass Estimates

    GigaCloud Technology Inc. (GCT) delivered earnings and revenue surprises of 64.71% and 6.84%, respectively, for the quarter ended March 2024. Do the numbers hold clues to what lies ahead for the stock?

  • Rivian's R2 Is Already Built to Fail

    R2 is too expensive even two years before launch.