Monday, 19 March 2012

HPQ - a floor, or a bear flag?

HPQ remains in a real problem....

2 weeks stuck at $24 level, having been in a significant renewed decline post-results.

Impossible to say which way this will break, however...the 10MA is currently level, and momentum cycle is due to break to + cycle early this new week. Might we see a standard gap fill back at the $27 level.

So, $3 upside, with an immediate $2 downside. Not a bad long, with a stop at 24.Although there are far better stocks out there. HPQ just smells too much like RIMM, and we all know how that stock chart looks. Something like AKAM or ADBE would be far more dynamic and arguably offer better underlying corporate growth/vision.