Hewlett Packard Surges 11.08% On Bullish Breakout Above Key Resistance

Candlestick Theory
Hewlett Packard (HPE) exhibits a decisive bullish breakout on the latest trading day (June 30, 2025), closing at $20.45 after an 11.08% surge. This forms a large bullish candle penetrating the $20 psychological resistance, supported by significantly elevated volume. The preceding hammer pattern near $17.80 (June 23) marked a reversal from a key support zone ($17.50–$18.00), aligning with the April 9 low. Immediate resistance now shifts to $21.00–$21.50 (March 2025 highs), while the $19.50 level acts as near-term support.
Moving Average Theory
The 50-day moving average (currently ~$18.80) has crossed above both the 100-day (~$19.10) and 200-day (~$18.70) averages, confirming a bullish "golden cross" signal. Price is now trading above all three MAs, indicating robust upward momentum. The 200-day MA provided consistent support during the May–June consolidation, reinforcing its role as a baseline for the emerging uptrend. Sustained price action above the 50-day MA would further validate bullish sentiment.
MACD & KDJ Indicators
MACD shows a bullish crossover, with the histogram expanding positively since mid-June, signaling strengthening momentum. KDJ oscillators are elevated (K: ~85, D: ~80, J: ~95), reflecting overbought conditions. While this suggests near-term exhaustion risk, persistent upward trajectory in the %K line implies momentum remains intact. Both indicators align in signaling upward pressure but warrant vigilance for potential divergence if price advances while momentum wanes.
Bollinger Bands
Price has surged above the upper Bollinger Band ($19.80), typically indicating overextension. However, the band expansion from June 25 onward reflects rising volatility, lending credibility to the breakout. A retest of the upper band near $20.00 could offer entry support. The bandwidth contraction preceding the breakout (June 20–24) highlighted a volatility squeeze, resolving bullishly with the recent surge.
Volume-Price Relationship
The breakout candle recorded 47.98 million shares traded—nearly triple the 30-day average volume—strongly validating the bullish move. Volume expanded during the June 24–30 ascent, indicating institutional accumulation. Earlier tests of the $17.80 support (June 20–23) saw elevated volume without further downside, suggesting distribution was absorbed.
Relative Strength Index (RSI)
The 14-day RSI (~71.3) has entered overbought territory (>70) for the first time since March 2025. While historically such levels precede short-term consolidations (e.g., 15% pullback after March’s RSI peak), the absence of bearish divergence tempers reversal concerns. RSI confirmation of higher price highs reinforces the trend strength but urges caution against aggressive chasing here.
Fibonacci Retracement
Using the April 9 low ($12.15) and March 7 high ($24.37) as anchors, key Fibonacci levels emerge:
- 23.6% retracement ($16.82): Held as support in mid-June.
- 38.2% retracement ($19.44): Breached decisively in the latest session, now acting as support.
- 50% retracement ($21.47): Next major resistance, aligning with the March 2025 congestion zone.
The 61.8% level ($23.50) remains a longer-term target, though overcoming $21.50 resistance is critical first.
Confluence & Divergence
A confluence of bullish signals exists:
- Golden cross (MA theory) aligns with volume-backed breakout.
- MACD/KDJ momentum confirms candlestick breakout above $20 resistance.
- Fibonacci 38.2% retracement reinforced by moving average cluster near $19.00.
No significant divergences are observed, though RSI overbought conditions against vertical price ascent may foreshadow consolidation. Near-term pullbacks toward $19.80–$20.00 would likely attract buyers given multi-indicator alignment. The breach of multi-month resistance shifts the technical structure to bullish-bias, with $21.50 as the next probable test.