Current trend

Shares of Hewlett-Packard Co., an American giant in information technology, are trading in a correction trend at 36.20.

At the beginning of the week, the company announced the appointment of Ma Fatima De Vera Francisco, former executive director of the department for child, women, and family care at The Procter & Gamble Co., to the Board of Directors. Thus, the organization increases the staff of top managers, attracting specialists from various sectors.

Amid the approaching corporate reporting period, leading analysts are renewing their estimates. Experts from Evercore Inc. published an investment note in which they expected an increase in sales of computers and laptops in the second quarter. It may positively affect the margins of market participants such as Hewlett-Packard Co. and Dell Inc., for which experts predict an increase in earnings per share by 9.0% or 0.31 dollars per share.

The financial report is due in August: revenue may increase from 13.2B dollars to 13.38B dollars, and earnings per share may amount to 0.85 dollars, approximately equal to 0.86 dollars in the same period a year earlier.

Support and resistance

On the daily chart, the trading instrument is moving in an upward trend, approaching the annual high of 39.00.

Technical indicators strengthen the buy signal: the fast EMA of the Alligator indicator is above the signal line, and the AO histogram forms correction bars in the buy zone.

Resistance levels: 37.00, 39.50.

Support levels: 35.60, 33.00.

Trading tips

Long positions may be opened after the price rises and consolidates above 37.00, with the target at 39.50. Stop loss is below 36.00. Implementation period: 7 days or more.

Short positions may be opened after the price falls and consolidates below 35.60, with the target at 33.00. Stop loss is 36.50.