HPE unable to break through key resistance level
Hewlett Packard Enterprise Company (HPE) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, HPE finished the week -2.04% lower at 14.44 after losing $0.26 (-1.77%) today, notably underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Closing below Thursday's low at 14.55, the market confirmed its breakout through the prior session low after trading up to $0.20 below it intraday.
Daily Candlestick Chart (HPE as at Feb 14, 2020):
Friday's trading range has been $0.47 (3.19%), that's above the last trading month's daily average range of $0.34. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for HPE.
One bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on January 31st, HPE actually gained 1.51% on the following trading day.
Prices are trading close to the key technical support level at 14.30 (S1). Unable to break through the key technical resistance level at 14.75 (R1), the share closed below it after spiking up to 14.82 earlier during the day. The failure to close above the resistance could increase that levels importance going forward. After having been unable to move above 14.82 in the previous session, the stock ran into sellers again around the same price level today, failing to move higher than 14.82.
Hewlett Packard shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
With prices trading close to this year's low at 13.81, downside momentum might accelerate should HPE break out to new lows for the year. As prices are trading close to February's low at 14.01, downside momentum could speed up should the market mark new lows for the month.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Hewlett Packard. Out of 132 times, HPE closed higher 58.33% of the time on the next trading day after the market condition occurred.