Hewlett Packard Co squeezed out a gain amid Friday’s market plunge on the back of the company reporting better than expected numbers which was seen as a huge positive by analysts and investors on the street. A share of Hewlett Packard gained by close to 1 percent outperforming the broader markets on the back of high volumes and is being seen as a huge positive as it is indicative of the clear shift of momentum towards the buy side. Many analysts believe for the first time in many quarters HP did not mention unexpected bad news which they believe should be seen as a positive.
Many believe that plans of splitting into two businesses in November one offering technology and services to businesses and another selling PC’s, printers and other gadgets to consumers is a huge positive. The move is being seen as a step taken by Chief Executive Officer Meg Whitman to make the business more responsive to market changes. Analysts on the street retain their outperform rating on the stock and believe that the move to split the business is the step in the right direction which is being seen as a huge positive by traders and investors on the street.
When looking at the daily charts for Hewlett Packard have been in a strong downtrend since the beginning of the year and have broken below all important daily moving averages which is a huge negative. The relative strength index is on the verge of giving a buy signal which is being seen as a huge positive. The momentum indicators have given a buy signal which is pointing towards a shift towards the buy side and is a bullish indicator. Traders on the street believe that the stock could head to levels of $29 in the near term.