HPE crashes, losing $1.19 (-11.49%) within a single day on high volume
Hewlett Packard Enterprise Company (HPE) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
HPE ended the week 0.66% higher at 9.17 after tanking $1.19 (-11.49%) today on high volume, significantly underperforming the S&P 500 (0.24%) following Thursday's earnings report. This is the biggest single-day loss in over two months. Trading $0.26 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price.
Daily Candlestick Chart (HPE as at May 22, 2020):
HPE reported earnings of $0.22 per share after Thursday's market close. With analysts having expected an EPS of $0.31, Hewlett Packard Enterprise Company failed market expectations by -29.0%. The company's last earnings report was released on March 3, 2020, when Hewlett Packard Enterprise Company reported earnings of $0.44 per share surpassing market expectations by 2.3%.
Friday's trading range has been $0.63 (6.7%), that's far above the last trading month's daily average range of $0.40. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for HPE.
Hewlett Packard closed back below the 50-day moving average at 9.53 for the first time since May 15th. When this moving average was crossed below the last time on May 11th, HPE lost -2.57% on the following trading day.
The share shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Selling might accelerate should prices move below the close-by swing low at 8.62 where further sell stops could get activated.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Stock Earning Report based market condition "Trading Day post weak Earnings Report" stand out. Although it is usually interpreted as neutral, it has actually shown to be bearish for Hewlett Packard. Out of 2 times, HPE closed lower 100.00% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 50.00% with an average market move of -0.53%.