Take a moment to read or re-read this post and comments section from November. HPQ was trading at $11.70, back down to levels not seen since the post-Dot Com crash.
Currently, Hewlett sits at $14.12 after a nice snap back. The issue is whether we have just witnessed a mere oversold bounce destined to fail, or if HPQ truly is (still) a great value down here. Even if it is the former scenario, note how price does indeed have memory. The straight-line move down “into the mattresses,” as I like to say, offered a high probability reversion to mean setup.
Now comes the hard part. Is that monthly hammer-like candlestick printed in November proving to be the bottom?
Feel free to weigh in below.