HPE is technically bullish with upward momentum and fundamental support from data center demand; it has room for growth above current levels.

Okay, let's talk about HPE, whose shares have seen a remarkable rise over the past month, by more than 20%. There is a lot of momentum in the infrastructure sector that is currently supporting it, Tim.

I've also noticed that they've been releasing a large number of television advertisements lately; I've seen at least six in the past week. This is a significant increase. So, how do you view Hewlett-Packard Enterprise now?

Well, the idea is simple. I don't have much to say here. I mean, you hit the nail on the head . Look at the construction of data centers. I know we've seen some news about OpenAI's revenue, but as I said, these people spend money lavishly.

Whether or not they manage to expedite their initial public offering and complete it on time, everyone is building infrastructure. Everyone is talking about data centers, but what actually happens inside them?

It's Dell, it's Intel, it's HPE, Hewlett-Packard. What I like about it is the idea of having so many of these classic American names . I mean, whether it was Intel or HP, those were the names my young people knew—the innovators, the builders, etc. They were lost for a while , and now they have returned.

These are names that people know. This may sound a bit cliché, but people say, "HP is doing great , and I remember HP. It's been around for a long time." So, they are drawn to its stocks, and the simple idea is that these huge data centers must be full of something. HP makes what goes into it.

But KG , while we look at the technical analysis of HPE, I mean, we certainly have a clearer chart in terms of its momentum and upward movement compared to Atlassian, but let us explain to you what you see in the technical analysis and what levels have caught your attention.

Yes, this is probably the best setup of all three stock charts we will be talking about today. This is actually very simple. He is talking about a fundamentally simple premise.

This is also technically simple. We have a 6-month base formation where we traded in a fairly strong channel here, and then we started to see an upward breakout, recording higher highs and lows.

Even when we saw a slight dip in June of this year, we saw a pullback, and then the price stabilized again, forming a cup and handle pattern. This simply means that we have a pullback, then consolidation, then a retest of the peaks, then another consolidation, then a breakout.

And that is exactly what we see. The breakout above the 20-day and 50-day moving averages acted as a support zone, where it made higher lows and highs, and we are now on the upward trend line.

Even if we see a short- term pullback to around $68 or $69, the trend is still positive, and still bullish. The Relative Strength Index (RSI) is also recording higher lows, which is a positive indicator .

The MACD indicator does not appear to be in a contraction phase at this stage. The stock appears to still be in a good position. Let's take a quick look at the weekly chart, as it is very important for long-term traders.

The 20-week moving average has been a strong support zone, with a large number of buyers entering in August of this year. Although we saw a bearish divergence on the Relative Strength Index, it has now been officially broken.

The stock appears to be trending upwards. Trading volume is rather low here, but that's also understandable because we had been trading within a relatively limited range for the past two or three years prior to the breakout that occurred during the past eight months.

Tim, I know we're not doing specific trades with you here, but are there any levels you're specifically watching on HPE stock that might prompt you to take action ?

Yes, of course. Okay, let me quickly review the upward chart. I like KG's analysis, but as you know, we're bouncing upwards towards the 72 level around now. Look at the previous breakout resistance level a few months ago, and then a few weeks ago, around 65.

So, I prefer to use the 65 level as a starting or stopping point. I always make sure to determine the level of risk first. As you know, there is a common saying in the market: It's okay to make a mistake, but don't give in to it.

Always choose a level where you feel you have built a hypothesis, combining fundamental and technical analysis, but the market is indicating that you are wrong. Don't fight the market.

Therefore, I like the 65 level to be the dividing line between upward and downward movement. With the stock's current trading pattern , we might expect some pullbacks, and perhaps a bounce off the 70 level, which is an important level to hold the stock.

But so far, the stock does not have a wide trading range . For example, if you buy a stock in the 70-72 range, you risk a level of 65. As KG mentioned, the stock's trend is upward, and this is what the moving averages indicate.

I think this stock has room to grow to give you a rewarding return for the risk, with the potential for the price to drop to around 65.

Okay. So, we will be watching the 65 level. Currently, we are at 7183, up 1 %.