El, Cpq has only tested 23 twice since July '98 - both times it didn't stay there very long, and therefore, IMO, didn't build a very strong base for support. Support at 20 is a bit better, although at this point getting quite old, and is even stronger (and older) at 17/18.
I think a fair amount of traders may be playing this for a bounce, and we'll see some selling pressure if they get it, or certainly if they don't. The general market could confound matters if it corrects appreciably, but I see CPQ holding at least 20 under current conditions (possibly will hold at 23 with some good fortune).
bigcharts.com
(hope this works -- a 3 year chart with bollinger bands and relative strength indicator)
Any good news (earnings?<g>) would obviously help and would relieve the downward pressure and assist in forming a solid base. Watch the relative strength -- it's very close to 20% now (lowest it's been in three years),if/when it hits 20%, that's the best indicator I've found for
a bottom.
All this is just my opinion, but buying CPQ anywhere between 20-23 should end up being a solid investment regardless of what has just transpired.
Now all we have to do is keep the general market propped up!
Whys1
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