It has been a two trading days since the massive dump HPQ took on Monday when it slid $3 on whopping volume. As the move digests, HPQ remains hanging around the $36 level, which corresponds to an area just below the 61.8% Fib retrace level (connecting March 2009 Lows with April 2010 Highs). Take a look at Figure 1 below.
Figure 1: Daily Chart of HPQ. Note the high volume dump and the subsequent trading around the $36 level. The Fib level is at roughly $36.70, which appears to have acted like an intraday upward resistance level. Of course, this is the upward level to break to consider a bounce. Inset, my Stockfinder Buy Signals. Chart generated using eSignal, inset panel generated in StockFinder 5.0.
We can now look at the 10-minute intraday chart. What we can see is that the 61.8% level at $36.70 has acted as intraday resistance. In particular, this price is where HPQ sold off today, having run up quickly at the open to this level. The stock gravitated back to test the $36 support level 2 more times, not successfully breaking it. We closed near the lows by the end of the day.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.