Tech Stock Approaching a Historically Bearish Ceiling

HP stock has been struggling long term on the charts

Managing Editor
Jun 7, 2019 at 1:42 PM
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Tech specialist HP Inc (NYSE:HPQ) is moving cautiously higher this afternoon, last seen up 0.8% at $19.83. The shares are eyeing their fourth straight positive close, but are nearing a historically bearish ceiling. HP stock also remains 15% lower year-over-year, signaling that now may be a good time for bears to get betting. 

Specifically, the security has moved within one standard deviation of its 80-day moving average after a lengthy stretch below it, per data from Schaeffer's Senior Quantitative Analyst Rocky White. Over the past three years there have been five other times this signal has sounded, resulting in an average one-month loss of 6.31% for HP stock, with an equally underwhelming 25% success rate.

Daily HPQ Since June with 80MA

Diving into analyst sentiment, HPQ has been subject to a handful of pessimistic positions. Specifically, six of the seven following firms sport a tepid "hold" or "sell" rating, with just one "buy" on the books. This surprising however, as the stock's average 12-month price target of $23.45 stands at an 18% upside to current levels.

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