HPE closes within previous day's range after lackluster session
Hewlett Packard Enterprise Company (HPE) Technical Analysis Report for Feb 13, 2019 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, HPE ended Wednesday at 16.05 gaining $0.05 (0.31%), slightly outperforming the S&P 500 (0.3%). Trading $0.14 higher after the open, the share was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (HPE as at Feb 13, 2019):
Wednesday's trading range has been $0.21 (1.3%), that's far below the last trading month's daily average range of $0.35. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for HPE.
Unable to break through the key technical resistance level at 16.19 (R1), Hewlett Packard closed below it after spiking up to 16.24 earlier during the day. The failure to close above the resistance could increase that levels significance going forward. When prices bounced off a significant resistance level the last time on January 31st, HPE actually gained 0.64% on the following trading day.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Trading close to December's high at 16.26 we might see further upside momentum if potential buy stops at the level get activated. As prices are trading close to February's low at 15.56, downside momentum could accelerate should the market mark new lows for the month.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(2) above 80" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Hewlett Packard. Out of 98 times, HPE closed higher 58.16% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 57.14% with an average market move of 1.52%.