Back in late October shares of HPE began a fresh rally leg following a Bank of America upgrade. The stock went on to reach new 2019 highs, and returned to extremely overbought territory, as the gain off the August lows hit 40%. Last week HPE took a huge hit after a rather mixed earnings report: https://seekingalpha.com/news/3522146-hpe-target-lifted-despite-mixed-quarter?mod=mw_quote_news . The stock finished that session with a 9% loss on extremely heavy trade.
HPE is approaching major support as the post earning sell off continues. Stabilization near this key zone will offer a very low risk entry opportunity for patient investors. The $15.50 to $15.20 area is marked by the July/September highs near the upper band and the powerful B of A inspired October 21st breakout gap. On the downside, a close below $15.00 would violate the 200D indicating a more drawn out pullback is ahead.
At time of publication we do not have a position in HPE.