The company delivered strong guidance and gave investors a big dividend boost in October. The shares rallied in after-hours trading following a big beat on quarterly expectations, Cramer said.
Lores said that PC demand is shaping up to be a secular business, not cyclical. Further, the company expects very strong demand "for the foreseeable future."
While consumer demand remains solid, the commercial business is on fire as offices reopen, Lores said.
Let's check on the charts of HPQ again.
In our review of Oct. 21 we wrote that "The charts have improved a lot since our June 2 review. Traders could try to buy HPQ at $30 or better or on strength above $31. Risk to $27. Target $38 for now."
In the updated daily bar chart of HPQ, below, we can see that traders got an opportunity to buy the shares at $30 or better in late October. HPQ is now trading above the rising 50-day and the rising 200-day moving averages -- this is the right kind of alignment we like to see with prices and moving averages.
The On-Balance-Volume (OBV) line is firm and knocking on a new high for the move up. This tells us that buyers of HPQ are being more aggressive with heavier volume being traded on days when HPQ closes higher. The Moving Average Convergence Divergence (MACD) oscillator is above the zero line and poised to cross to the upside for a new buy signal.
In the weekly Japanese candlestick chart of HPQ, below, we can see that prices are trading above the rising 40-week moving average line. A bullish hammer pattern in early October marked the low.
The OBV line is moving in the right direction and the trend-following MACD oscillator is bullish.
In this daily Point and Figure chart of HPQ, below, we can see an upside price target in the $39 area.
In this weekly Point and Figure chart of HPQ, below, we used a five-box reversal filter. Here it is projecting a longer-term price target in the $56 area.
Bottom-line strategy: Traders who are long HPQ from our October recommendation should stay with those positions but raise stops to $29 from $27. Our nearest price target is $39 and $56 is possible in 2022.