Market Technical View is a blog that mostly concerns the technical analysis of different financial instruments like indices, commodities, stocks, ETFs and currencies.

All the posts are structured in 3 main chapters that can be found in Content, in the upper right-hand corner of the blog.

Market perspective. The technical approach consists of chart patterns and important support/resistance zones. The purpose of this section is to give directions of the price on short and medium term (a few days up to a few months).

Trading setups. The analysis posted here will provide trading scenarios based on different technical tools.

Romanian Market. This is a section dedicated to Romanian stocks and indices.

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Wednesday, January 9, 2013

Hewlett Packard (HPQ) analysis

The price action confirmed the late November scenario. The next target stands now at $16.80, followed by $22.00 on the mid term.

Take a look at the left chart (nov.26 analysis: and see how the price followed my scenario: sharp comeback towards the 75 days average (green line in the $15.00 area) followed by a few weeks of indecision and then an obious bull domination that lead to the break above $15.00 level which is now a strong support.

IMPORTANT: Earnings announcement: 21 Feb. 2013!!!   

Tuesday, January 8, 2013

Groupon analysis.

This stock has good chances to rise in the short and mid term as more technical signals are converging and the current price is in the $5-$10 range, where the chances for a double-digit percentage move are really high.

Here are a few elements that are pointing towards a higher price:

  • high volumes at local lows in November ($2.65-$4.65 area)
  • exhausting gap down on over 100M volume day
  • price is over the 50 day exponential moving average (green) and the crossover volume was high
  • low volumes in the last few weeks, in a narrow  price range between the 50 EXPMA and 100 EXPMA
  • good internal wave structure starting from the most notable previous local highs in February 2012 (according to Elliott Wave analysis - not labeled in the chart in order to make it clear) 
Having all this clues noted, the investors should look for the next scenarios:
  • immediate break above the current resistance from $5.50 (probably this week), followed by a quick retest of $5.500 as a support and then resuming move up. 
  • another week or two in the same price range ($4.50-$5.50) on relatively low volumes (indicating an accumulation) followed by the break above the $5.50 resistance (as a confirmation) and reaching afterwards for the closest target zone. 

The first TARGET ZONE is in the $7.90-$9.00 area.
IMPORTANT: earnings report for Q3 is set on 8th of February!