Stock of the day: HP Inc

Wednesday is, of course, all about the FED’s rate decision. However, you may find some time to look at the situation on Hewlett-Packard Company (HPQ), which in my opinion, is rather bearish.

You can see that since November 2021, HPQ has been moving rather sideways. Thanks to that, the price has managed to create a key support on the 34 USD (orange). After many tries, in June, that support eventually broke. The breakout gave us momentum and confidence for a further slide, which as a consequence broke the long-term up trendline (black).

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. A negative sentiment will be cancelled should the price come back above the orange area, but chances for that now are rather limited.