Earnings Play: Hewlett Packard Enterprise

Possible pull back before further advance.

Uptrend 2

Today, after market, Hewlett Packard Enterprise (HPE) is expected to report fourth quarter EPS of $0.35 compared to $0.49 last year on revenue of approximately $6.9 billion vs. $7.2 billion a year earlier. The company is a supplier of information technology products and services, and its expected move based on front-month options is 6.0%. The last time the company reported earnings the stock rose 3.6%.

Technically speaking, on a daily chart, Hewlett Packard's stock price has been rising in a steep short-term up trend since October 30th. The RSI has just pulled back from overbought territory and is holding above 60. HPE entered a new up trend on November 16th after price crossed above the 200-day simple moving average (SMA). If the 50-day SMA crosses above the 200-day SMA it would be another bullish signal. Given the RSI reading and the sharp angle of the short-term up trend, price could potentially retreat before continuing to advance towards the last peak of 11.70. If price falls below the bullish trendline then traders should look for a bounce off of 10.25. If price is supported at 10.25, it will probably retest 11.70. If price can break above 11.70 its next targets would be 12.50 and 13.30. However, if price fails to find support at 10.25 then traders should look to 9.50 for a rebound. If price drops below 9.50 it would be a bearish signal that could send price tumbling lower.         

Source: GAIN Capital, TradingView

Build your confidence risk free

More from Earnings

Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.