Hewlett Packard Enterprise ( HPE) has been trading in a sideways to slightly higher trading range since September. Prices tested the rising 200-day moving average line last month as volume increased. Will HPE break out to new highs in the weeks ahead or will the trading range market continue? Let's get on the latest charts and indicators.
In this daily chart of HPE, above, we can see that prices not only held the rising 200-day moving average line, but also several tests of the $16.50 level in January, February and March. Prices are currently above the slightly rising 50-day moving average line.
The On-Balance-Volume (OBV) line was positive/rising from May, but flattened out and turned neutral in the fourth quarter. In the past month, the OBV line has turned a little softer. In the lower panel, the Moving Average Convergence Divergence (MACD) has crossed back above the zero line for an outright go long signal.
In this limited weekly chart of HPE, above, we can see that prices are above the rising 40-week moving average line. The weekly OBV line is steady and even shows some improvement in recent weeks. The MACD oscillator has been above the zero line and is getting close to a bullish crossover.
In this Point and Figure chart of HPE, above, we focus only on price changes. HPE is in an up column (Xs) and there are no downside price gaps like the daily bar chart above. HPE has plenty of chart support below current levels and a breakout to the topside yields an initial upside price target near $22.
Bottom line: a close above $18.60 will turn the trend up on HPE, while a close below $16.50 will weaken the picture. Aggressive traders could buy strength above $18.60, risking a close below $17.
