The PC is Dead, Long Live PC Stocks

The PC is dying, or so we hear on the television. Yet one of the largest PC makers, Hewlitt-Packard, $HPQ, is nearing a breakout higher and disk drive maker Seagate, $STX, is in a similar situation. Listen to the television or follow the price action?

hpq w

Whether you like the break of the neckline of the Inverse Head and Shoulder as an impetus for a run to the price objective of near 45, or more conservatively the move into the consolidation and a break higher for a run to resistance at 37.50, there is something for everyone here. The technical indicators, MACD and RSI are bullish and rising to support a move higher. This is a weekly chart so give it some time.

stx

Seagate is a shorter timeframe idea. It has resistance at 50.50 (red line) and a break over that would target a move to 54. That is just above the Potential Reversal Zone (PRZ) from the bearish Deep Crab harmonic pattern at 53. But that just gets it started. A Cup and Handle pattern shows up when you back out a bit with a target of 63.50. It all gets started on a move over 50.50.

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