HP heavily falls after the release of its quarterly results down. The U.S. giant computing has delivered disappointing forecasts and plans for restructuring and repositioning do not seem able to allay investor concerns. Return to growth is not expected before 2013.

Recovery is not evident on the group results. For its first quarter lagged, HP posted a net profit drop of 44% to $ 1.5 billion. Its sales are followed by 7% to $ 30 billion. The group mainly suffers of a sharp decline in its retail computer sales, which collapsed 18%. There is also the cons-sales performance of printers and related products (-7%) and servers (10%).

Technically Hewlett-Packard opened a large gap after its results announcement. The stock is now moving under the 20 and 50-days moving averages. In weekly data, the share is about to push the 20-weeks moving average that supported the trend. 50 and 100-weeks moving averages are bearish and could support a downward movement in the next few weeks.

In light of the technical configuration and fragile fundamentals, we must stay out of the security. An objective will be attached to the bearish gap opened on January 3 near 26 USD in a first time, and then close to the 24 USD. Only a return to the area 22.2 / 24 USD will allow to reevaluate the situation for a purchase.