T2 (final target) has been hit & exceeded for a 12%+ gain on the earnings disappointment induced gap today. Therefore, consider booking full profits as HPQ will now be moved to the Completed Trades category.
HPQ is currently indicated to gap below the first target (T1 at 24.16) as the stock is trading down sharply in the pre-market session following their quarterly earning release and outlook. As the first target, which is/was also support, has been bypassed so far with the stock currently trading at 23.35 as I type, the odds of the second and final target (T2 at 23.22) is likely to be hit and as such, is now the preferred and still final target. My preferred strategy when a position is indicated to make a large gap in the direction of my trade is [...]
HPQ currently offers an objective short entry on the breakdown below this rising wedge pattern. A reaction at the 25.50 support level is likely but should be fleeting. T1 (24.16) is currently my preferred target at this time although that may change soon depending how the market trades over the next few sessions.
I spent some time pouring over the charts last night looking for trade ideas. In doing so, I came up with numerous candidates, both long and short. Some of these trade ideas are already listed as Active Trades on the site and/or Trade Setups while many are not. I'm going to start with the short trades here & plan to follow up with some of the Long Trade Ideas soon. Some of these trades are currently offering objective short entries at current levels while others are still setting up in bearish chart patterns, awaiting a formal breakdown or sell trigger. I [...]
I'm going to run out for a bit & just figured that I share my thoughts on the previously stopped out HPQ short trade. I'm still watching for a break below that one minute uptrend line. Since the last post, HPQ had a sharp spike to new highs, which was more than likely the last major cluster of shorts all throwing in the towel and/or falling victims to a stop-raid by the big boyz. As such, I'm adding HPQ back on but only as a short setup at this time with an entry to be signaled if I see some solid [...]
HPQ is trading just slightly above the suggest stop area so if you took the trade and were stopped out, best to let it go. The stock is still likely to reverse soon and if it breaks below this support level on the 1 minute chart, it will most likely continue down to backtest the top of today's gap. If that happens and HPQ continues much below today's lows (into the gap) odd are that gap will be backfilled rather quickly. I'm going to go ahead move this trade to the complete trades category as a stopped out trade but will [...]
HPQ looks like an objective short here around 19.00 as it has made an very over-extending run, gapping today right into a solid resistance level marked by several previous gaps. Trades like this should be considered aggressive as my style (which most traders deem impossible) often consists of catching tops and bottoms. For example, my last trade on HPQ was a long entry just two trading sessions before the multi-year low put in on November 20th and that trade was closed out for a 16.7% gain one month later. Regardless of whether this is a temporary (or possible a longer-lasting top, [...]