Australia markets open in 5 hours 49 minutes
  • ALL ORDS

    7,735.80
    -3.50 (-0.05%)
     
  • AUD/USD

    0.7180
    -0.0033 (-0.46%)
     
  • ASX 200

    7,408.80
    -8.50 (-0.11%)
     
  • OIL

    85.16
    +1.34 (+1.60%)
     
  • GOLD

    1,813.50
    -3.00 (-0.17%)
     
  • BTC-AUD

    57,930.93
    -1,264.91 (-2.14%)
     
  • CMC Crypto 200

    992.34
    -17.05 (-1.69%)
     

Should You Buy HP (HPQ) After Golden Cross?

  • Oops!
    Something went wrong.
    Please try again later.
·2-min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

HP Inc. (HPQ) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, HPQ's 50-day simple moving average broke out above its 200-day moving average; this is known as a "golden cross."

A golden cross is a technical chart pattern that can signify a potential bullish breakout. It's formed from a crossover involving a security's short-term moving average breaking above a longer-term moving average, with the most common moving averages being the 50-day and the 200-day, since bigger time periods tend to form stronger breakouts.

There are three stages to a golden cross. First, there must be a downtrend in a stock's price that eventually bottoms out. Then, the stock's shorter moving average crosses over its longer moving average, triggering a positive trend reversal. The third stage is when a stock continues the upward momentum to higher prices.

This kind of chart pattern is the opposite of a death cross, which is a technical event that suggests future bearish price movement.

HPQ has rallied 20.1% over the past four weeks, and the company is a #3 (Hold) on the Zacks Rank at the moment. This combination indicates HPQ could be poised for a breakout.

Once investors consider HPQ's positive earnings outlook for the current quarter, the bullish case only solidifies. No earnings estimate has gone lower in the past two months compared to 7 revisions higher, and the Zacks Consensus Estimate has increased as well.

Moving Average Chart for HPQ
Moving Average Chart for HPQ

With a winning combination of earnings estimate revisions and hitting a key technical level, investors should keep their eye on HPQ for more gains in the near future.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

HP Inc. (HPQ) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting