Set-up is there, earnings tomorrow

Taking a look at HP as it is expected to report earnings tomorrow. Currently, its stock is trading at around $32.79 a share. Looking at the weekly chart, we can see the base support which is outlined by the green channel. This channel is a key area as it has proven its resilience in the past. As a result, this has led to the rally higher over the recent weeks. The support there ranges between $24.04-$27.30, creating greater confidence. Looking at the upside, the price has now approached the resistance point marked by the red oval, this resistance reads $33.34-$33.89. A break above this resistance would then see the stock face resistance at $35.43. The area outlined by the dotted trendlines is the key target area here for investors, as those prices have not been seen since May 2022. In theory, HP’s share price has not made any progress in the last two years, hence, investors are determined to at least recover the losses since 2022. A move into that area would invite room for consolidation going into H2 of 2024. Based on the technical indicators, the near-term outlook is now starting to look more positive. The MACD has turned positive and is rising and so is the RSI as it reads 67.