HPQ was recently covered in the SPX Index Analysis Video highlighting a bear-flag pattern that had recently broken down. Although there could be some more downside left in this one, especially if the broad markets continue lower soon, I do think the HPQ is likely poised for a nice bounce soon.
Please note: This is what is referred to in trading as “trying to catch a falling knife”. These type of trades are only for aggressive and nimble traders. My preference on this trade is to take a partial position here (which I just did) with appropriate stops below and add to this position if & when prices break above the bullish falling wedge pattern. I have identified the targets on the 4-hour chart below but also included the daily chart which does show another downtrend line that is likely to come into play as resistance on any move higher. The main reasons that I am entering the trade now is that I will often establish positions, usually partial positions, at the top of rising wedges (shorts) and the bottom of falling wedges (longs), if the pattern is confirmed by the proper divergences on the oscillators.