Option Investor
New Plays
HAVING TROUBLE PRINTING?
Printer friendly version
New Plays
Long Plays
Short Plays
HPQ None

New Long Plays

Hewlett Packard - HPQ - cls: 32.94 chg: +0.43 stop: 31.75

Company Description:
HP is a technology solutions provider to consumers, businesses and institutions globally. The company's offerings span IT infrastructure, global services, business and home computing, and imaging and printing. For the four fiscal quarters ended Jan. 31, 2006, HP revenue totaled $87.9 billion. (source: company press release or website)

Why We Like It:
HPQ has been very strong with a steady, long-term up trend from its lows in 2005. While we would prefer to buy a dip toward the simple 50-dma we are not sure that HPQ is going to provide one any time soon. The $32.00-32.50 levels were resistance during the previous four weeks and now the stock is bouncing from that zone, which should be expected since broken resistance tends to become new support. Thus we see today's bounce as our entry point to go long this momentum stock. We're going to set our stop loss at $31.75 and target a rally into the $35.00-35.50 range. More aggressive traders may want to use a wider stop loss.

Picked on February 22 at $32.94
Change since picked: + 0.00
Earnings Date 02/15/06 (confirmed)
Average Daily Volume: 13.5 million
 

New Short Plays

None today.
 

Premier Investor New Play Archives