Once the Apple of its day, Hewlett-Packard (NYSE:HPQ) made some unfortunate decisions that then tanked the stock. After reaching a high of $54.75 on April 16, 2010, the stock of Hewlett-Packard hit a low of $11.35 some 32 months later.
Since that time, the stock has made a recovery into the mid to high 20s, but still has further to go on the upside based on pure technical analysis.
Yesterday, I looked at the stock of Groupon (NASDAQ:GRPN) and illustrated its head and shoulders chart pattern, one of the most reliable technical patterns in my playbook. Hewlett-Packard is just the opposite, as there is a very well supported head and shoulders base that is capable, in my opinion, of taking Hewlett-Packard back up to the $37 or $38 level.
Looking at the Trade Triangles, the monthly Trade Triangle kicked in yesterday at $27.68 for Hewlett-Packard, indicating that all systems were now a "go" on the upside for this stock.
1.) Left shoulder of a head and shoulders bottom
2.) Head of a head and shoulders bottom
3.) Right shoulder of a head and shoulders bottom
4.) Head and shoulders neckline
5.) Breakout and monthly Trade Triangle buy at $27.67 on 12/3/13
6.) Fibonacci target zone $37.89
7.) All Trade Triangles are green
As with any investment or trade, always use money management stops to protect capital.
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Every success with your trading,