Shares of HP Inc.  (HPQ) - Get Report  were relatively stable on Monday, falling about 1.1% despite turning down a buyout offer from Xerox (XRX) - Get Report .

The development between the two companies has been interesting, to say the least. Given how  far off the recent highs HP Inc. was trading, it was clear investors weren't all that optimistic a buyout deal would get done. Thus, shares are only down slightly on the day. 

However, it doesn't mean a deal between the two is off the table -- not by a long shot.

Just recently, HP Inc. was looking over Xerox as a possible acquisition target. That would make more sense than Xerox buying HP, given that the latter's market cap is about four times the size of the former.

Clearly, both sides believe a tie-up would be advantageous. Famed investor Carl Icahn must think so too. He has a sizable stake in Xerox, but a recent 13-F filing revealed he now has a stake in HP Inc. as well.

All of this makes HP a compelling pick for Real Money'sStock of the Day.

What does all of this mean for investors and is the stock still tradable with all the M&A news? Admittedly, the trade news makes it more difficult, but there are still key levels to watch from here.

Trading HP Stock

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HP stock has several excellent long-term levels to focus on. The most attractive point is down at $16, a proven level of support. In fact, we highlighted this level on HP's post-earnings slump last month. Those who bought near $16, a key mark over the past five years, have done very well in a short amount of time.

Should we see HPQ come down to this level it may be worth looking at on the long side, depending how current developments play out.

Other areas of interest include channel resistance (blue line) and the declining 50-week moving average.

Addressing the former, this channel resistance mark has been in play for about a year now. On news of the potential deal with Xerox, shares shot through this mark, but failed to close above it on a weekly basis. Consolidating near it now, it would be bullish to see HP stock push above this area. If it can clear last week's high -- $20.25 -- then $21.50 is technically on the table.

As for the 50-week moving average, this mark had played support from 2016 through 2018. However, it's now acting as resistance. Currently holding up above it now, HPQ bulls have a chance to make a stand. They can solidify that stand by clearing $20.25.

If the stock falls below the 50-week moving average at $19.63, it may be a sign that lower prices are in order, potentially down to the 200-week moving average.

This article is commentary by an independent contributor. At the time of publication, the author had no positions in the stocks mentioned.