After Hitting A New 52-Week High, HP Looks Primed For Downside

VantagePoint Trading Software is a forecasting tool that uses both end of day data and artificial intelligence to provide traders a forecast of market movement. These forecasts are 1-3 days in advance and help traders improve their timing on making trades and maximizing profit potential. The artificial intelligence software forecasts market movement for stocks, futures, forex, ETFs, and cryptocurrencies. 

The VantagePoint Trading Journal On HP

On March 9 HP Inc HPQ broke above $24 to make a new 52-week high at $24.24. Three days later the stock hit $24.80, the highest it's been since April 2010. But according to VantagePoint's predictive indicators, the stock is in for some near-term downside. 

The chart below shows a one month chart of HPQ. Pay attention to three things:

• The black line, which is the stock's simple 10-day moving average
• The blue line, a prediction of what the stock's moving average will be one day in advance
• The red-green bar at the bottom, which is a predicted Neural Index that measures general strength or weakness in a stock

Note what happened on Monday, March 12. The two lines crossed over, and the Neural Index shifted from green to read. This tells us that the bullish trend has ended and to expect weakness. As long as the two lines don't cross back over and the Neural Index stays red (as was the case at Thursday's close), HPQ will have weakness on Friday. 

The following chart is mostly the same, save for one key difference: the predicted blue line represents what HPQ's moving average will be three days in advance, as opposed to one.

As you can see, the two lines have converged in recent days, indicating that a crossover is imminent. While that crossover hadn't occurred by Thursday's close, we know from the previous chart to expect it to happen on Friday. 

That would push the bearish forecast further out in the distance, indicating downside as far ahead as Wednesday's trading.  

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