As an options trader, it is prudent to use technical as well as fundamental
analysis when looking for potential trades. Here is one such example that looks
pretty bullish using both methods. There has been a lot of uncertainty with
Hewlett-Packard Co. (NASDAQ: HPQ ) lately. The company has had well-publicized
management problems, and it just can't seem to decide which direction the
computer giant should focus on. That being said, many analysts agree that the
company is still very profitable and undervalued. HPQ still sells the most
personal computers of anyone. Technically, the stock has come off its recent
lows at about $22 and has been trending up. The stock recently had a nice little
pullback and, on Friday, the stock started to move up again. If the stock can
get over a resistance area at about $26.30, HPQ might be able to fill the gap it
left in August. A nice target for HPQ would be around $30. If the stock drops
below $24, a support area, consider exiting the long position. The trade:
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