HPQ Wedge

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Hewlett-Packard looks to be in the last throes of a Rising Wedge.  A Rising Wedge on a chart is a bearish formation.  When a stock breaks down from this formation it usually moves fairly quickly. On the chart below, I offer my analysis of HPQ.

HPQ Rising Wedge

You can click on the chart to enlarge it.  HPQ closed yesterday at $26.24. A Rising Wedge typically retraces the entire move of the wedge, which implies a move down to the $19-20 area. There is a large Gap that should easily get filled and then some support at $21.2 based on consolidation that occurred in mid-May. The next support level appears is $19.68.

I also note that there are two other Gaps created earlier in the move.  Gaps tend to get filled, it’s just a matter of how soon. This will be interesting to watch.

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