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We Warned You About Hewlett-Packard

Back in 2014, on November 19th, we published “Is Hewlett-Packard Strong Enough?”. We thought it was not. The only reason for our bearishness was the wave structure on the weekly chart of the stock. It could easily be counted as a five-wave impulse. See it below.
hewlett-packard 19.11.14
According to the Elliott Wave Principle, every impulse is followed by a correction in the opposite direction. That is why we wrote that “investors could be very disappointed, if they buy, when Hewlett-Packard makes a new high” in wave 5. Now, more than nine months later, let’s see how Hewlett-Packard has been developing since the forecast.
hewlett-packard 26.8.15
As expected, the stock reached a new high of 41.08. What followed, was a total disappointment. On the so-called “Black Monday”, Hewlett-Packard fell as low as 24.84. That is how the Wave principle helps analysts predict major reversals. All you need is a chart.
What now? Well, it looks like the updated chart shows a nice 5-3 wave cycle. As the theory postulates, we should now prepare for the resumption of the larger uptrend. If this is the correct count, Hewlett-Packard stock prices should start rising soon. The bulls might even take the stock above 41.08 in the long term.



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