Thanks to some tough cost-cutting measures implemented by CEO Mark Hurd, Hewlett-Packard Company (NYSE:HPQ) is in a position to give out strong 4Q outlook. This has sent the stock price sharply higher yesterday, up over 14%. I invite you to take a look at the accompanying chart. The “C” wave has made a perfect landing at $28.23, a level which is 1.618 times the “A” wave. (wish I was trading stocks full time, as that would have been a low-risk trade there!). Anyway, there is ample material out there for you to read, a good number of them saying the party may not last much longer! From a purely technical point of view, we have to be careful near 34.20and more so at 36.00. DOn’t make the mistake of buying near these levels, folks, as there is a pretty good chance we will get a decent-sized pullback from either of the two levels. I would actually try to go short near 36.00 with a 25-cent stop! Good trading!
HP’s turnaround looks good- but beware of resistance above!
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