In one of the "Executive Decision" segments on "Mad Money" Thursday, Jim Cramer sat down with Dion Weisler, president and CEO of HP Inc. (HPQ) . They talked about innovation and sustainable actions by corporations. My wife and I try to consider our grandchildren in our day-to-day efforts to recycle and use less fossil fuel, but this morning I want to consider the charts of HPQ.
In this daily bar chart of HPQ, below, we can see that prices are in an uptrend the past 12 months. Prices moved sideways from October to May and prices crossed above and below the 50-day average line a number of times. HP is above the 200-day line and we can see successful tests of the line in February, April, and May.
The daily On-Balance-Volume (OBV) line has moved up and down with the price action but has a positive slope for the year and just made a new high for the move up. In the lower panel is the 12-day price momentum study, which shows a pattern of lower highs from March. This tells us that the pace of the advance from March has slowed. This is a significant bearish divergence, but it only may translate into a period of sideways trading as prices do not have that much to reverse at $26.
In this weekly bar chart of HPQ, below, we can see a bullish alignment of the indicators and prices. HPQ is above the rising 40-week moving average line and has been since early 2016. The weekly OBV line has been bullish for nearly three years and the MACD is pointed up in a bullish configuration.
In this longer-term Point and Figure chart of HPQ going back to 2008, below, we can see that a price target of $22.50 has been reached. I do not know why the software has not projected a much higher price target, but the pattern suggests the possibility of significant long-term gains.
Bottom line strategy: I do not have a price target, but traders and investors could stay long HPQ with a stop below $23.