Stock of the day: HP Inc

It’s time for a short update on the Hewlett-Packard Company (HPQ), which we had previously analysed at the end of July. Back then, our view was strongly bearish and we were saying:

“Over the past few days, the price has come back to break supports, in order to test them as crucial resistances. After two trading days this week, we can say that the test was positive for sellers as the price clearly rejected higher levels and bounced off them aiming south. All of this gives us a legitimate sell signal.”

Well, that was a great call. The price fell almost immediately reaching the lowest levels since February 2021.

So, what’s next for HPQ? First, pay attention to how the stock is respecting the Fibonacci levels. Very accurately. With that, it doesn’t seem weird that we’re being bearish and seeing the target on the 61.8%. The closest resistance now is the 50% retracement and the sell signal is on as long as we stay below that blue area.