Watch These HP Price Levels as Stock Tumbles After Company Cuts Outlook Due to Tariffs
Thursday's decline followed a breakdown from a rising wedge pattern in yesterday's trading session.
Investors should watch important support levels on HP's chart around $25, $23 and $21, while also monitoring a key overhead area near $29.HP (HPQ) shares plunged Thursday after the PC maker missed analysts' profit expectations and issued a light outlook, citing increased costs from tariffs.
The PC maker said its guidance reflects tariff costs and actions taken to mitigate associated trade risks, adding that it had responded quickly to expand its manufacturing footprint and reduce its cost structure. CEO Enrique Lores said during the earnings call that additional tariff costs "could not be fully mitigated in the quarter," and that HP has "implemented price increases to help offset cost pressure."
HP shares fell more than 8% Thursday, posting the biggest declines in the S&P 500. The stock has lost nearly a quarter of its value so far in 2025 as investors assess the cost of the company's ongoing efforts to diversify its supply chain while it navigates the Trump administration's unpredictable trade policies.
Below, we take a closer look at HP's chart and use technical analysis to identify price levels worth watching out for.
Since bottoming out early last month, HP shares have staged a countertrend rally, forming a rising wedge pattern in the process.
In an ominous sign, the stock broke down below the pattern's lower trendline on above-average volume in Wednesday's trading session ahead of the company's quarterly report, paving the way for a continuation move lower.
It's also worth pointing out that the relative strength index has recently fallen below the 50 threshold, signaling weakening price momentum.
Let's identify three important support levels to watch and also locate a key overhead area worth monitoring during future upswings.
The first lower level to watch sits around $25, right about where the stock closed on Thursday. This area may provide support near a brief period of consolidation within the rising wedge pattern and the prominent September 2023 trough.
A move below this level could see HP shares fall to the $23 region. The price may attract support here near the low of the stock's first minor dip after bouncing from its early-April low.
Selling below this level opens the door for the shares revisiting lower support at $21. Investors may seek longer-term buy-and-hold entry points in this area near last month's tariff-driven low.
During future upswings in the stock, investors should monitor the $29 area. A recovery effort into this region would likely meet overhead resistance near the rising wedge pattern's peak, which also closely aligns with a temporary pause in the stock's downtrend during March.
The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our warranty and liability disclaimer for more info.
As of the date this article was written, the author does not own any of the above securities.
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