One of this Mornings Biggest Losers: Halliburton

Bottom-up play in the energy sector

Energy 3

On Thursday, Halliburton (HAL), an oil and gas services company gapped down over 12% at the opening bell.

From a chartist's point of view, on a daily chart, Halliburton's stock price has been rising inside of an ascending channel that started in mid-March. On Friday, June 5th, price broke to the upside of the channel and managed to hold above the upper trend line until this morning. The RSI is currently headed back down towards 50 after falling from overbought territory. Price is expected to slip a little lower before bouncing off the lower trend line around the $11.00 support level, maintaining the channel. Price would then have support to make its way back up to retest the $16.50 level before continuing to $18.50. If price cannot hold up the lower trend line around the $11.00 support, then price might decline towards the $9.00 support and possibly lower.      

Source: GAIN Capital, TradingView

Looking at a weekly chart, Halliburton's stock price has been falling within a descending channel that has been in place since mid-May of 2018. Price is approaching a critical point inside of this channel, the upper trend line. If price advances to the upper trend line and is rejected, then we should expect price to fall in the intermediate-term. But if price is able to break through the upper trend line, it could be the start of an up trend.  

Source: GAIN Capital, TradingView

More from Equities

From time to time, GAIN Capital Australia Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.

As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.