Hewlett-Packard Company (NYSE:HPQ)
Hewlett Packard is testing the top of a consolidation box at 33.85. The move into the box measured higher (Measured Move) targets a rise to 45. The RSI is in the bullish range and holding with a MACD that is moving higher. These support more upward price action. There is resistance higher at 37.25 and 40 followed by 43.60 and 48.65. Support lower may be found at 31.40 and 28.40 followed by 24.95.
Long Term
Trade Idea 1: Buy the stock on a move over 33.85 with a stop at 32.85.
Trade Idea 2: Buy the July 33 Calls (offered at $1.33 late Friday) on the same trigger.
Trade Idea 3: Buy the June/July 34 Call Calendars (43 cents).
Short Term
Trade Idea 4: Buy the June 33/34 Call Spread selling the Jun 33 Put (35 cents) looking for a pin at the 34 Strike where there is large Open Interest.
Trade Idea 5: Buy the June 33/34 1×2 Call Spread selling the June 33 Put (free).
Trade Idea 6: Buy the June 33/34/35 Call Butterfly (34 cents).
After reviewing over 1,000 charts, I have found some good setups for the week. These were selected and should be viewed in the context of the broad Market Macro picture reviewed Friday which, heading into the first full week of June sees the Equity markets had a good week but may need a pause or pullback before continuing, as they are overbought on some measures. Elsewhere look for Gold to consolidate with a downward bias while Crude Oil consolidates with an upward bias. The US Dollar Index seems content to move sideways on the long term consolidation but with a short term upward bias while US Treasuries are biased lower in the short term. The Shanghai Composite looks to be stuck in a rut, moving sideways, and Emerging Markets are biased to the upside. Volatility looks to remain subdued keeping the bias lower for the equity index ETF’s SPY, IWM and QQQ, despite the moves higher, although the VIX is near historic lows. The Equity Index charts themselves all look good for more upside, but are becoming overbought on the shorter timeframe. On the weekly charts they look strong, so perhaps some sideways or a pullback before more upside. Of course they can just keep rising and get more overbought short term. Use this information as you prepare for the coming week and trad’em well.
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.