HPE dominated by bulls lifting the market higher throughout the day
Hewlett Packard Enterprise Company (HPE) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, HPE ended the month 0.21% higher at 9.73 after gaining $0.15 (1.57%) today, slightly outperforming the S&P 500 (1.54%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 9.64, Hewlett Packard confirmed its breakout through the previous session high after trading up to $0.12 above it intraday.
Daily Candlestick Chart (HPE as at Jun 30, 2020):
Tuesday's trading range has been $0.25 (2.62%), that's far below the last trading month's daily average range of $0.39. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for HPE.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns. The last time a Bullish Short Candle showed up on May 27th, HPE actually lost -1.74% on the following trading day.
Buyers managed to take out the key technical resistance level at 9.69 (now S1), which is likely to act as support going forward.
The stock shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might accelerate should prices move above the nearby swing high at 10.00 where further buy stops could get triggered.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Resistance R1" stand out. Its common bullish interpretation has been confirmed for Hewlett Packard. Out of 114 times, HPE closed higher 57.02% 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 57.89% with an average market move of 0.89%.