Hewlett Packard has been in a tight range since June 8, cooling off after a nearly 200% move from April to the highs on June 2. Some may remember them as a printer/ink company, but their work in cloud computing is why they're here today.

• My relative strength dashboard has had cloud ETFs steady leading for several weeks. We've seen such strength in other cloud names like AMZN, MSFT, GOOG, ANET among others.
  
• HPE is reacting today from the cluster of moving averages: 10 day, 21ema, and 50 day. While this is good on its own, the above mentioned names have put in their respective big moves while breaking out from this MA stack. HPE has been on a good run but had not pulled back to the 50-day since the move began in late March, so this looks like a continuation of trend with today's reaction there.
  
• On the daily chart: 1) price is reacting right off of cloud support, which helps bolster the view. 2) The MACD line is crossing over and above the signal line, which is a bullish crossover. Histogram is turning positive as well from negative. Stochastics show plenty of room to run.
  
• On the weekly: Price is trading well above the cloud, a sign of trend. The MACD is very clearly bullish, having moved lower as price cooled off from the large move the week of June 1. Stochastics also indicate room to run.
  
• The box on the chart shows the consolidation, and we're still in it. If price breaks out, this one could run as its peers did. This gives two potential entries: 1) Enter now based on the read, 2) Wait for a breakout. I am already in at 50.05 with about 7% of my account. My goal is always get in early, use a tight stop, and just take the small loss if it happens. I am happy to take these repeatedly because when I'm right, and in early, it makes up for the losses.
  
• Stop could be just below today's low. However I will manage dynamically. If it takes out today's low and recovers I will put my stop below there. If it starts to struggle and stay below today's low, or below the 50-day, I may just cut it.