HPQ- trading idea 3/16/2018




This week HP have not doing great and there was a decline on the price from 24,75$ to 23,48$. The momentum is bearish, but I think this due to profit taking and it shouldn't last long.  Lets review the overall picture and find a good trading opportunity.



Checking on the daily chart, I will use three indicators this time- MACD, Ichimoku cloud and the 200 MA.  First the 200 MA, the price is way over it and even at February there was a nice rebound on it. Looking at the Ichimoku cloud, we are over it, which also indicate us the bullish trend. Lastly the MACD, we are over the 0 level but there is a cross, between the two lines, which shows us the bearish moment. Even that I dont expect to last long and will look for a support below the current price level.

Lets check on the monthly pivot points from the February data on the current daily chart for a good trading entry.  The levels are below.


X Scalper
R2 R1 PP S1 S2
midpoint midpoint midpoint midpoint
26.79 25.94 25.09 23.65 22.2 21.35 20.5 19.06 17.61



Currently the price is over the PP level, which is another confirmation on the bullish trend.  Looking on the monthly pivot point levels, I see three very good trading opportunities.  The PP level, R1 and S1.  Looking at the PP level, it acted as a support/resistance level before and also there was a gap closed at that price, which should be a really strong support.

The other 2 levels shouldn't be underestimated as well. At R1 the price was stopped twice and if it manages to break that resistance it should go way up.  And S1 it is a strong support considering that there was a price consolidation between the PP and S1 levels.

All of the three levels, should be a good entry points and the exit could be the next pivot point level or why not even after that.

Please note that this my view of the market and should trade responsible.




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