09/18/00 Hewlett Packard (HWP)
Points to watch:
After surging 131% from its 10/27/99 low
to a 3/10/00 high of 155.50, HWP spent the next month consolidating its
gains before hitting a new 52-week high of 156 on April 7th. The
stock has been in a steady decline since hitting its peak , with lower
highs on each rally attempt, and is now approaching important support
The stock fell 3.06 on Friday to close
at 103, a minor support level provided by the July 28th low. HWP hit an
intraday low of 102 on Friday. The stock is now just above important
support at 101, the 2000 low set on January 6th and a level which
represents the 62% retracement of the stock's 10/99-4/99 rally.
Technical indicators continue to
deteriorate. MACD gave a sell signal on Friday, daily OBV has been
in a steady decline since early April, both daily RSI and stochastics
continue to trend lower.
A sell, or sell short signal would be
given on a break below support at 101, with the next downside support then
coming at 97, 90.5, and 85. Resistance is at 107 and 113.