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
About the author:
Tom Bowley is the Chief Market Strategist of EarningsBeats.com, a company providing a research and educational platform for both investment professionals and individual investors. Tom writes a comprehensive Daily Market Report (DMR), providing guidance to EB.com members every day that the stock market is open. Tom has contributed technical expertise here at StockCharts.com since 2006 and has a fundamental background in public accounting as well, blending a unique skill set to approach the U.S. stock market.
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