Hewlett Packard seems to face difficult to maintain its business out of the water. Meg Whitman the new chief executive announced her plans to cut 30 000 jobs during the next few weeks to save money to develop new products and the efficiency of its sales force. HP will announced its second fiscal quarter earnings on May 22th but consensus doesn’t expects miracles.

The American leader in computer equipment is crossing difficulties since the decline of its personal-computer branch and the fail of many recent technologies that they missed or in which one they didn’t met the expected success. Turnover is declining and expected at 122 billion dollars representing a 4% falling back.

Technically the stock followed a strong downward movement since February and is on a strategic level at USD 22.03, crossing point of the short-term support. Moving averages are bearish and the USD 22 support crossing will be a strong selling signal. the share is testing important technical support in both daily and weekly data. We suggest to toke a long position and bet on technical rebound aiming as first target USD 25.25. A stop-loss is necessary below the technical support at 20.4