Late last week HP Inc. stocks fell to a 52-week low, having lost more than 10% in value after the announcement of the launch of a large-scale business restructuring, which involves a reduction of 7K to 9K jobs in the next three years. The new plan of action will allow the company to save about $1 billion in operating costs and is focused on turning HP Inc. to a powerful software and service center.
Last week HP Inc. shares decreased by 10.20%. The S&P 500 index for the same period decreased by 0.32%.
Support and resistance
The stock is dominated by “bearish” sentiment. Quotes renew local lows. At the moment, the key range is 16.50–17.35. There is potential for further decline. Indicators reflect the strength of sellers: the price consolidated below MA (50) and MA (200); The MACD histogram has begun to decline. It is better to open the positions from the key levels.
A comparative analysis of the multiples of the company and competing companies in the industry indicates the neutrality of the instrument.
Resistance levels: 17.35, 18.15, 19.15.
Support levels: 16.50, 15.70.
Trading tips
Short positions can be opened after the price consolidates below the level of 16.50. The closing of the profitable positions is possible at the levels of 15.75, 15.00 and 14.50. Stop loss – 17.25.
Long positions can be opened after the price consolidates above the level of 17.35 with the target at 18.70–19.50.
Implementation period: 3 days.
| Scenario |
| Timeframe |
Intraday |
| Recommendation |
SELL STOP |
| Entry Point |
16.50 |
| Take Profit |
15.75, 15.00, 14.50 |
| Stop Loss |
16.75, 17.25 |
| Key Levels |
15.70, 16.50, 17.35, 18.15, 19.15 |
| Alternative scenario |
| Recommendation |
BUY STOP |
| Entry Point |
17.40 |
| Take Profit |
18.70, 19.50 |
| Stop Loss |
16.60 |
| Key Levels |
15.70, 16.50, 17.35, 18.15, 19.15 |
HP Inc. provides personal computing and other access devices, imaging and printing products and related technologies, solutions and services in the United States and internationally. The company operates through three segments: personal systems, printing and corporate investments. The personal systems segment offers commercial and consumer personal computers, personal computers, workstations, thin clients, commercial mobility devices, retail outlets, screens and other accessories, software, support and related services. The printing segment offers hardware, supplies, solutions and services for commercial and consumer printers, as well as scanning devices. The corporate investment segment includes HP Labs and business incubation projects. It serves individual consumers, small and medium enterprises and large companies, including clients in the government, health and education sectors. HP Inc. has a strategic alliance with Siemens AG; and collaboration with SmileDirectClub. The company was previously known as Hewlett-Packard Company and changed its name to HP Inc. in October 2015. HP Inc. was founded in 1939 and is based in Palo Alto, California.
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from
https://alphabetastock.com/2019/10/07/hp-stock-losses-nyse-hpq/
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