Current trend

Shares of Hewlett-Packard Co., the American giant in the field of information technology, have been trading for six weeks around the pivot level 32.81 (Murrey level [2/8]) and could not move away from it.

Last week, the quotes tried to decrease and entered into the negative part of Murrey’s main trading range, consolidation below 31.25 (Murrey’s level [4/8]). If the lower border of the central channel is broken at 30.47 (Murrey level [3/8]), the negative dynamics will continue to 29.69 (Murrey level [2/8]) and 28.91 (Murrey level [1/8]). The key “bullish” level is 32.03 (Murrey level [5/8]), and after the consolidation above it and the middle line of Bollinger bands, growth may resume to 32.81 (Murrey level [6/8]) and 33.59 (Murrey level [7/8]).

Technical indicators are signaling the continuation of the downward trend: Bollinger bands are reversing downwards, and the MACD histogram has entered the negative zone. Stochastic reversal upwards in the oversold zone does not rule out an upward correction, which is unlikely to change the trend.

Support and resistance

Resistance levels: 32.03, 32.81, 33.59.

Support levels: 30.47, 29.69, 28.91.

Trading tips

Short positions may be opened below 30.47 with the targets at 29.69, 28.91 and stop loss around 31.00. Implementation period: 5–7 days.

Long positions may be opened above 32.03 with the targets at 32.81, 33.59 and stop loss around 31.50.