Shares of Hewlett-Packard Co., the US IT giant, are trading in a corrective trend at 32.86.

On the daily chart, the price is holding within the global ascending corridor with dynamic boundaries 30.00–35.00 and is currently approaching the resistance line.

On a four-hour chart, it is clear that if the local high of July 12 at 33.50 is overcome, the necessary confirmation will be received to continue the current growth, which may last until the quotes reach the global channel resistance line at 35.00. This is also signaled by the local Flag pattern, the condition for the implementation of which is this high.

Technical indicators give a buy signal, narrowing slightly and pointing to a local correction: fast EMAs on the Alligator indicator are kept at a stable distance from the signal line, and the AO histogram forms new bars, being in the buying zone.

Trading tips

Long positions should be opened after the price consolidates above the local high of 33.50 with the target of 35.20. Stop-loss — 32.80. Implementation time: 7 days and more.

Short positions can be opened after a reversal and decline in the asset, as well as consolidation of the price below the local support level of 32.00 with the target of 30.30. Stop-loss — 32.80.