Feb. 17, 2000
. H-P. I own this stock and have been burned so many times that I've lost count. This is the reason I was so hesitant to recommend the stock when it broke out last week, through 120.
earnings out, I thought I'd review the chart. The high last summer at 119, the swoon down to 70 and subsequent rise have formed a base-like picture on the chart. The recent breakout over 120 was on good volume, with the subsequent pullback to the breakout on lighter volume. These are all good signs if you are long on the stock. A simple measurement of that base says H-P can go up near 175, although let's remember this is H-P, so I don't expect it to get there in a straight line!
And since we're looking at charts like this, I'd like to point out
. The move last month through 135 on volume and the subsequent pullback on lighter volume, followed by a renewed rise on expanding volume, make this a good chart. The measured target comes from measuring the high at 135 minus the low at 60, which gets us 75. Add that 75 to the breakout at 135 to get 210.
But today of course all eyes and ears will be on
and his testimony to
. Individual stock news may not matter.
Helene Meisler, based in Singapore, writes a technical analysis column on the U.S. equity markets on Tuesdays and Fridays, and updates her charts daily on TheStreet.com. Meisler trained at several Wall Street firms, including Goldman Sachs and Cowen, and has worked with the equity trading department at Cargill. At time of publication, she was long Hewlett-Packard, although holdings can change at any time. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. She appreciates your feedback at