Hewlett Packard shares fall the most in a week on Tuesday, tech giant to acquire Nimble Storage for $1.09 billion

Hewlett Packard Enterprise Co (HPE) was reported to be planning the acquisition of data storage provider Nimble Storage Inc in order to firm its presence in the flash storage business. The deal, estimated to $1.09 billion, was based on Nimble Storages 87.5 million outstanding shares as of November 30th, Reuters reported.

Hewlett Packard shares registered their largest daily slump since February 27th during Tuesdays trading session. The stock went down 1.08% ($0.25) to $22.82, after touching an intraday low at $22.70, or a level not seen since February 28th ($22.00). In the week ended on March 5th the shares of the tech giant added 0.39% to their market value compared to a week ago, which marked the fourth gain in the past five weeks. The stock has neutralized earlier advance and is now flat so far during the current month, following a 0.62% surge in February. The latter, however, has been the smallest monthly increase in at least 24 months. For the entire past year, the shares of the tech solutions provider gained 52.24%.

Entry- to mid-range flash-based products, offered by Nimble Storage, are expected to aid Hewlett Packard in servicing clients in all segments, according to a March 7th statement by the technology company.

Global flash storage market, valued at $15 billion last year, is seen by experts expanding to almost $20 billion by the year 2020. At the same time, sales in Hewlett Packards storage business were reported to have shrunk 13% during the latest quarter.

The deal, expected to be finalized in April, is seen as contributing to Hewlett Packard Enterprises earnings during the first full fiscal year after the finalization.

“The company can bring Nimbles operations to scale more quickly”, Abhey Lamba, an analyst at Mizuho Securities, wrote in a client note, cited by Reuters. “While accretive, however, we do not think the deal is likely to move the needle for investors.”

Daily and Weekly Pivot Levels

With the help of the Camarilla calculation method, todays levels of importance for the Hewlett Packard stock are presented as follows:

R1 – $22.86
R2 – $22.91
R3 (Range Resistance – Sell) – $22.95
R4 (Long Breakout) – $23.09
R5 (Breakout Target 1) – $23.25
R6 (Breakout Target 2) – $23.31

S1 – $22.78
S2 – $22.73
S3 (Range Support – Buy) – $22.69
S4 (Short Breakout) – $22.55
S5 (Breakout Target 1) – $22.39
S6 (Breakout Target 2) – $22.33

By using the traditional method of calculation, the weekly levels of importance for Hewlett Packard Enterprise Co (HPE) are presented as follows:

Central Pivot Point – $22.78
R1 – $23.57
R2 – $24.08
R3 – $24.87
R4 – $25.65

S1 – $22.27
S2 – $21.48
S3 – $20.97
S4 – $20.45