HEWLETT PACKARD ENTERPRISE is setting up nicely for a breakout.

Our stock screener has detected a potential breakout setup on HEWLETT PACKARD ENTERPRISE (NYSE:HPE). This breakout pattern is observed when a stock consolidates following a strong upward movement. It's important to note that this pattern is based on technical analysis, and the actual breakout outcome is uncertain. However, it might be worth keeping an eye on NYSE:HPE.

In-Depth Technical Analysis of NYSE:HPE

As part of its analysis, ChartMill provides a comprehensive Technical Rating for each stock. This rating, ranging from 0 to 10, is updated on a daily basis and is based on the evaluation of various technical indicators and properties.

Taking everything into account, HPE scores 10 out of 10 in our technical rating. Both in the recent history as in the last year, HPE has proven to be a steady performer, scoring decent points in every aspect analyzed.

• Both the short term and long term trends are positive. This is a very positive sign.
• Looking at the yearly performance, HPE did better than 86% of all other stocks.
• HPE is currently trading in the upper part of its 52 week range. The S&P500 Index however is currently trading near a new high, so HPE is lagging the market slightly.
• HPE is currently showing a bull flag pattern! A bull flag pattern occurs when prices pull back slightly after a strong rise up. This may be a nice opportunity for an entry.
• HPE is part of the Technology Hardware, Storage & Peripherals industry. There are 32 other stocks in this industry, HPE did better than 64% of them.

Our latest full technical report of HPE contains the most current technical analsysis.

How do we evaluate the setup for NYSE:HPE?

In addition to the Technical Rating, ChartMill provides a Setup Rating for each stock. This rating, ranging from 0 to 10, assesses the extent of consolidation in the stock based on multiple short-term technical indicators. Currently, NYSE:HPE has a 8 as its setup rating:

Besides having an excellent technical rating, HPE also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is very little resistance above the current price. There is a support zone below the current price at 20.55, a Stop Loss order could be placed below this zone.

Trading breakout setups.

One way to play this would be to wait for the actual breakout to happen and buy when the stock breaks out above the current consolidation zone. A possible place for a stop loss would be below this zone.

Of course, there are many ways to trade or not trade NYSE:HPE and this article should in no way be interpreted as trading advice. The article is purely based on an automated technical analysis and just points out the technical observations. Always make your own analysis and trade at your own responsibility.

Every day, new breakout setups can be found on ChartMill in our Breakout screener.

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.