Hewlett Packard Enterprise (HPE) does not have a long chart history to work with, but its limited run has been mostly on the upside. Can it continue its winning ways?
In this daily chart of HPE, above, we can see a small bottom in January and February of this year. Prices gaped higher in early March, with volume surging and the On-Balance-Volume (OBV) turning up.
HPE quickly made a 50% upside move before an April to May correction. The correction ended with another gap to the upside in late May. Prices are still pointed up, above the rising, 50-day simple moving average line and the rising 200-day line. The OBV line continues its uptrend -- and confirmation of the advance.
The only "but" on this chart is the bearish divergence between the higher highs in price in June, July and August and the lower momentum readings over the same three months. The rate of the advance has slowed, and that means investors should pay closer attention, as this leading indicator (momentum) typically peaks before prices.
A bearish divergence is not a sell signal, rather an amber traffic light. Traders and investors in HPE can stay long, but a close below $20 will prompt a reappraisal of conditions.