HPE pushes through Thursday's high
Hewlett Packard Enterprise Company (HPE) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
HPE finished the month 1.44% higher at 9.87 after gaining $0.25 (2.6%) today on high volume, strongly outperforming the S&P 500 (0.77%). Today's close at 9.87 marks the highest recorded closing price since June 18th. Closing above Thursday's high at 9.67, the share confirmed its breakout through the prior session high after trading up to $0.23 above it intraday.
Daily Candlestick Chart (HPE as at Jul 31, 2020):
Friday's trading range has been $0.45 (4.69%), that's far above the last trading month's daily average range of $0.32. 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 lower than usual for HPE.
One bullish candlestick pattern matches today's price action, the White Candle.
The stock managed to close back above the 100-day moving average at 9.67. When this moving average was crossed above the last time on Wednesday, HPE actually lost -0.93% on the following trading day.
Though Hewlett Packard is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
As prices are trading close to July's high at 9.95, upside momentum might accelerate should the market mark new highs for the month.
Among the seven 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 119 times, HPE closed higher 56.30% 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 56.30% with an average market move of 0.90%.