HPE remains bullish with key support at 52.85-40.11

Hewlett Packard Enterprise (NYSE: HPE) maintains a bullish long-term Elliott Wave outlook despite its recent decline. The weekly chart suggests that an impulsive rally from the $11.61 low has completed wave ((3)), leaving the stock vulnerable to a corrective wave ((4)) before another potential advance.

HPE Elliott Wave structure

Following the major wave II bottom at $11.61, HPE is showing an incomplete bullish sequence in three swings which appears to have completed the larger-degree wave ((3)) near the recent highs. The latest weekly candle shows a sharp pullback, consistent with the possibility that wave ((4)) is beginning. Corrections often unfold through multiple swings rather than a straight decline. Consequently, an initial bounce would not necessarily mean the correction has finished. The projected chart path illustrates a rebound followed by another dip before the larger uptrend resumes.

HPE stock forecast: Support levels

The key area to monitor is 40.11, corresponding to the 38.2% and 61.8% Fibonacci retracement levels of wave ((3)) marked on the chart. This zone may attract buyers as wave ((4)) develops. Price could react near $52.85 initially, while a deeper correction toward $40.11 remains possible.

The chart identifies $11.61 as the long-term Elliott Wave invalidation level. However, this distant level should not be confused with a practical stop-loss for short-term positions.

What’s next for HPE?

If wave ((4)) completes above the structural invalidation level, HPE could begin another bullish sequence and eventually challenge the wave ((3)) high. Confirmation would require evidence that the correction has ended and upward momentum is returning.

Overall, our HPE Elliott Wave analysis favors buying opportunities after a corrective structure completes rather than selling into the broader trend. The40.11 region remains the principal area to watch, although projected support and upside targets are not guaranteed. The weekly trend continues to favor buyers over sellers.