Hewlett-Packard Company (NYSE:HPQ) reported fantastic quarterly sales, beating analysts expectations. HPQ ‘s net earnings jumped 25%. to $2.3 billion making them $0.96 per share. Excluding a one time charge, HPQ earned $1.10 which was above analysts expectations of $1.06 per share. In addition, Hewlett- Packard upped revenue guidance slightly. The stock responded positively to this report sending it slightly higher. The stock is trading up a tiny 0.5% on the day.
While Hewlett-Packard had a solid quarter, the stock had already raced into earnings from a low just two weeks ago of $46.46. As of the close yesterday, prior to their earnings report, the stock ended at $50.12, just shy of the 50 moving average on the daily chart. It should be no surprise to anyone that HPQ on earnings ran up, kissed the 50 moving average but now finds itself back just below. As resistance points go, this is a major level which has not been tested since it broke below in mid January. Broken support becomes solid resistance and that is one of the main factors technically, why Hewlett-Packard was seen yesterday, going into earnings, as having a muted response.
The charts can literally dictate and tell you what the odds are on a move going into earnings or other news. They almost seem to know the future. Learn them and profit!
Gareth Soloway
Chief Market Strategist
InTheMoneyStocks.com
