Hewlett Packard Stock's Death Cross Signals Trouble: Can AI Hype Save It?

Hewlett Packard Enterprise Co. HPE investors have a technical red flag flashing—the dreaded Death Cross.

The stock has tumbled 23.24% year-to-date and 18.78% in the past month, and now, a bearish crossover of the 50-day and 200-day simple moving averages suggests more downside could be ahead.

While HPE's AI collaboration with Nvidia Corp NVDA is generating buzz, the technicals tell a different story.

Read Also: Nvidia Stock Climbs As AI, Tariff News Spark Buying Interest

HPE Stock: A Strongly Bearish Trend

Chart created using Benzinga Pro

HPE stock, at $16.48, trades below its five, 20 and 50-day exponential moving averages, indicating a strong bearish trend despite slight buying pressure.

The eight-day simple moving average (SMA) at $15.89 provides a bullish signal, but the broader outlook remains bleak:

• 20-day SMA: $17.17 (bearish signal)
• 50-day SMA: $20.09 (bearish signal)
• 200-day SMA: $20.22 (bearish signal)
• Moving Average Convergence Divergence (MACD): negative 1.25 (bearish momentum)
• Relative Strength Index (RSI): 37.61 (nearing oversold territory, but not yet in bounce territory)

AI Buzz Vs. Bearish Technicals

Hewlett Packard recently announced new enterprise AI solutions in partnership with Nvidia, aiming to accelerate AI adoption with improved performance, security, and power efficiency.

While CEO Antonio Neri highlights AI's transformative potential, technical indicators suggest the stock faces near-term selling pressure.

Investor Takeaway

Despite AI-driven optimism, HPE stock's Death Cross and continued technical weakness caution against bullish bets. The stock's downward momentum remains intact, and traders should watch key resistance levels before considering an entry.

Until Hewlett Packard proves it can capitalize on AI hype with tangible results, investors should brace for turbulence.

Read Next:

• Can GM’s Nvidia-Powered AI Push Steer Stock Away From Looming Death Cross?

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