Last week, Austin Hankwitz and I did a livestream to discuss how best to marry fundamental and technical analysis and provide insights into our process and how we utilize certain tools. Click the link to watch the replay here.
We have seen relative strength come from former laggards recently, including Hewlett Packard (HPE):
HPE has confirmed a breakout above the May 2021 high in an extension of its long-term uptrend that began in late 2020. The breakout is associated with positive momentum across timeframes, suggesting overbought conditions can be absorbed for now.
To enhance its breakout in absolute terms, HPE also has a breakout versus the S&P 500 Index, with the ratio above its 200-day moving average, suggesting it will see additional outperformance versus the broader market over the intermediate term.
HPE’s breakout in absolute terms targets the all-time high near $19.47, suggesting upside potential of roughly 15%. We would adhere to a stop-loss discipline in this tape, which has proven fragile of late. A stop-loss for HPE can be placed below previous peaks at $15.89.
Hewlett Packard (HPE, $16.97)
Target: $19.47
Stop Loss: $15.89