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

Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.