Don't Ignore This Chart!

Haliburton Weakness Setting Up Strong Reward To Risk Trade

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Haliburton (HAL) had risen close to 70% from its February low to its early June high, but since that time has simply consolidated those gains.  Over the past two weeks, HAL has declined close to 10% and is nearing a very important short-term price support level.  The closer it gets to that level, the better the reward to risk appears on the long side.  Check this out:

Note also that throughout this 2016 rally, the daily MACD has been mostly positive and every trip on the RSI into the 40s has resulted in a near-term bottom.  Currently, the RSI resides at 43.  If HAL closes beneath 41.75, I'd re-evaluate.  Until then, short-term weakness looks like a trading opportunity here.

Happy trading!

Tom

Tom Bowley
About the author: is the Chief Market Strategist at EarningsBeats.com, where he provides stock market education, guidance, and trading strategies using a unique combination of technical, fundamental, and historical analysis. Tom provides EarningsBeats.com members with four portfolios (Model, Aggressive, Income, and Value), all designed to beat the benchmark S&P 500, and a revolving Watch List of hundreds of companies reporting strong quarterly earnings (must beat both revenue and EPS estimates) and exhibiting technical strength as well. These companies comprise EarningsBeats' annotated Strong Earnings ChartList (SECL), from which Tom trades exclusively. Tom writes a Daily Market Report (DMR) for members to include an executive summary, market outlook, sector/industry watch, and trading ideas. Learn More
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