HP Shares Rally 3.00% to $26.11 Amid Bullish Technical Signals and Volume Surge

Hewlett-Packard (HP) shares rallied 3.00% to close at $26.11 on August 8, 2025, marking two consecutive trading days of gains and a cumulative 4.40% advance. This upward movement positions HP near a critical technical juncture that warrants multi-indicator analysis to assess sustainability and directional bias.
Candlestick Theory
The recent price action reveals a bullish engulfing pattern formed by the August 7-8 sessions, where the 3% white candle completely overcame the prior day’s 1.36% advance. This pattern signals strong buyer conviction near the $25.03 support level established on August 7. Immediate resistance converges at $26.15 (August 8 high), closely aligning with the June peak of $26.26. Crucially, the absence of long upper wicks in both sessions indicates limited overhead supply absorption. Secondary support resides at $24.97 (August 4 swing low).
Moving Average Theory
HP currently trades above its 50-day SMA ($25.20) and 100-day SMA ($24.80), reflecting constructive medium-term momentum. The 50-day SMA recently completed a bullish crossover above the 100-day SMA in late July, reinforcing intermediate-term strength. However, the 200-day SMA at $27.60 continues to cap upside progress, creating a critical resistance zone. This multi-SMA configuration suggests near-term consolidation is likely before any sustained breakout attempt.
MACD & KDJ Indicators
The MACD (12,26,9) shows a positive trajectory with the histogram expanding for five consecutive sessions, confirming strengthening bullish momentum. Meanwhile, the KDJ oscillator (14-period) presents a conflicting signal: The %K line (86) and %D line (79) have entered overbought territory. While MACD supports continuation, KDJ’s current position indicates elevated risk of a pullback, particularly as the stochastic nears a potential bearish crossover. This divergence warrants caution.
Bollinger Bands
Price has rebounded from the lower Bollinger Band ($24.75) towards the upper band ($26.40), accompanied by a 15% band width expansion over five sessions. This volatility surge typically precedes directional conviction. The current position near the upper band suggests temporary exhaustion, though expanding bands reduce the likelihood of immediate reversal. A consolidation phase to absorb this move appears probable before the next significant price impulse.
Volume-Price Relationship
August 7’s 3% advance occurred on 8.42 million shares – the highest volume in ten sessions – validating initial breakout conviction. However, August 8’s follow-through rally saw 7.07 million shares (-16% volume divergence), suggesting waning buyer enthusiasm near resistance. The volume profile remains constructive overall, with accumulation days outnumbering distribution 3:1 over the past month. Critical support at $24.97 (August 4) was defended on 27% below-average volume, indicating minimal selling pressure.
Relative Strength Index (RSI)
The 14-day RSI (70.8) has entered overbought territory for the first time since early June 2025. While this reading warrants vigilance, its warning nature is mitigated by the absence of bearish divergence; both price and RSI made higher highs. Historically, HP has sustained RSI readings >70 for up to five sessions during strong trends. Nevertheless, current levels increase vulnerability to profit-taking.
Fibonacci Retracement
Applying Fibonacci to the dominant swing from the April 4 trough ($22.61) to the August 8 peak ($26.15) reveals critical levels. The 38.2% retracement ($24.80) aligns with the August 7 low and 100-day SMA, creating a major support confluence. The 23.6% level ($25.40) overlaps with the July 31 high and currently serves as immediate intraday support. Sustained trading above $25.40 would confirm the uptrend’s integrity.
Confluence & Divergence Synthesis
Confluence exists at $25.80-26.15, where Bollinger Band resistance, the June swing high, and psychological resistance converge. Meanwhile, the KDJ overbought signal diverges from MACD’s bullish momentum, implying short-term indecision. The high-volume breakout through the 100-day SMA and golden cross formation underpin the bullish case, though RSI exhaustion and Fibonacci resistance at $26.15 warrant tactical patience. Probability favors a consolidation phase between $25.40-26.15 before directional resolution. A decisive close above $26.20 could trigger momentum chasing toward $27.50, while failure to hold $25.40 suggests retesting $24.80 support.