Crude oil futures surged on Monday due to disruptions in Russian refining capacity caused by Ukrainian drone strikes and Moscow's decision to cut output to comply with OPEC+ targets. The West Texas Intermediate (WTI) contract for May settled at $81.95 a barrel, up $1.32, while the Brent contract for May settled at $86.57 a barrel, also up $1.32. Russia instructed...
HP’s earnings are coming out
2020-08-24 • Updated
All attention to the HP’s Q3 earnings report on August 27 at 23:30 MT time. Are you ready?
What happened?
The company’s performance has been really awesome during 2020. Stocks have managed to rise by 28 during summer so far. In fact, they got a boost from the tech stocks’ boom amid the coronavirus. No wonder that the demand for HP’s products and services surged amid the stay-at-home regime as people were forced to work remotely. According to Gartner, HP Inc. was the second largest PC seller in the second quarter of 2020. That is why its earnings report for the second quarter showed a growth. In addition, it raised its dividend payouts by 10% since the last year. In a nutshell, the overall picture is quite optimistic for the PC maker. Let’s discuss what predictions analysts have.
Forecasts
Wall Street brokers recommend to hold HP shares. They set a target price of $18.06, which is slightly less the current stock price. Deutsche Bank has the same target price and advises to hold HP shares. Unlike them, analysts from JP Morgan have more optimistic prospects and have established the price of $21. Bloomberg foresees a decline of HP’s year-over-year revenue in the third quarter, but a growth on the quarter-over-quarter bias.
What does it mean?
The market is on the side of stocks these days, as vaccine hopes and improved US-China relationships encourages investors. Moreover, investors are ready for the slump of HP’s revenues. Therefore, if actual numbers come out better than expected, it will drive the price upward more than usually. Otherwise, if they come out less than the forecasts, the HP’s price will dip down.
Technical tips
HP has been climbing up slowly, but confidently. If it breaks through the 200-day moving average of $18.40, it will open doors towards the high of August 10 at $19.00. In the opposite scenario, if it falls below the key support of $18.00, it may plummet even deeper to the low of July 21 at $17.50.
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Bearish Scenario: Sales below 80.00 with TP1: 79.34, TP2: 78.94, TP3: 78.55, and 78.00 Bullish Scenario: Buys above 78.00 (wait for a retracement to the zone) with TP: 79.34 TP2: 80.00, and TP3: 81.00
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Hello again my friends, it’s time for another episode of “What to Trade,” this time, for the month of April. As usual, I present to you some of my most anticipated trade ideas for the month of April, according to my technical analysis style. I therefore encourage you to do your due diligence, as always, and manage your risks appropriately.
Bearish scenario: Sell below 1.0820 / 1.0841... Bullish scenario: Buy above 1.0827...