HPQ – Hewlett-Packard Company – Developer and manufacturer of computing, storage, and networking hardware, software and services, HP saw its shares raising above previous top at $37.00 and reaching short term target at $39.00. From October 07 peak at $53.50 prices traded sideways in a distribution pattern before breaking through the main bullish support line at $48.50 and reversing the trend to bearish in December 07. The initial decline found solid support at $40.00 where a double bottom developed and formed the base of a new trading range with resistance at $49.50. The sideways movement lasted until October 08 when a triple bottom breakout at $39.50 triggered further weakness. The new wave of decline reached the intermediate lows at $28.50 where a corrective up move generated. The movement bounced off resistance at $39.50 a former support level during the previous decline. Lately prices weakened further approaching the downside target at $24.50 before reacting to the upside. The main bearish resistance line rejected the first attempt of penetration at $33.50 but not the second which break through the line at $34.00 confirming the trend reversal. Prices are now raising along the intermediate support line and are expected to challenge previous peak at $39.50. Relative Strength vs the market is positive making it a likely outperformer for the long run. Stay long and increase at double top breakout at $39.00 with short term target at $42.50. In the medium to long term the objective is set at $59.00. On the downside lighten at double bottom breakout at $33.50 and close all long at violation of the main bullish support line now crossing at $32.00 with possible contraction down to $26.50.
NVDA – Nvidia Corporation – Shares of the world leader in visual computing technologies bounced off intermediate bearish resistance line at $12.00 leaving no reason yet to go long. From August 07 peak at $54.00 a sharp Long Tail Down pattern developed breaking through the main bullish support line at $41.50 and switching the trend from bullish to bearish. The initial downtrend found support at $32.00 where a corrective up move developed. A double top pattern at $39.50 ended the correction clearing the way for a new wave of contraction which halved shares value reaching $17.50 on March 08. A new corrective up move bounced off resistance at $25.50 triggering the final sell off which touched the lows on November 08 at $5.75. After trading sideways for few months with base at $7.25 the March 09 up thrust prompted a possible trend reversal. Resistance at $12.25 pushed back the movement and now prices are trying to penetrate intermediate resistance line crossing at $11.75. Relative Strength vs the market is still negative in the long run anticipating a possible underperformance. The weight of the evidence is still on the bearish side. Lighten at triple bottom breakout at $10.00 and close all longs at double bottom breakout at $8.25 with initial downside target set at $7.25. On the upside open new longs at penetration of the main bearish resistance line now crossing at $13.25 with target set at $19.50.