HPE finds buyers around 9.29 for the third day in a row
Hewlett Packard Enterprise Company (HPE) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
HPE ended Wednesday at 9.47 gaining $0.19 (2.05%), strongly outperforming the S&P 500 (-0.46%). Closing above Tuesday's high at 9.44, the market confirmed its breakout through the previous session high after trading up to $0.23 above it intraday.
Daily Candlestick Chart (HPE as at Sep 16, 2020):
Wednesday's trading range has been $0.38 (4.06%), that's slightly 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 lower than usual for HPE.
Buyers managed to take out the key technical resistance level at 9.41 (now S1), which is likely to act as support going forward. The last time this happened on September 2nd, HPE actually lost -3.15% on the following trading day. After spiking up to 9.67 during the day, the stock found resistance at the 50-day moving average at 9.61. Hewlett Packard found buyers again today around 9.29 for the third trading day in a row after having found demand at 9.26 in the prior session and at 9.27 two days ago.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Selling could speed up should prices move below the close-by swing low at 9.26 where further sell stops might get activated. Trading close to July's low at 8.95 we could see further downside momentum if potential sell stops at the level get triggered.
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 122 times, HPE closed higher 55.74% 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 57.38% with an average market move of 0.90%.