Halliburton Company (NYSE:HAL) fell by -0.20% in Thursday’s trading session from $45.18 to $45.09 The stock price went upward in 6 of the last 10 days and has generated 3.7% during the last two weeks. There was a decrease in both volume and price. This is usually interpreted as a good sign as traders widely believe falling stock should see declining volume. Traded activity experienced a fall of -1.53 million shares and in total 5.48 M shares exchanged hands for about $247.19 million.
Inside HAL’s Recent Trend
Halliburton Company (HAL) is the upper part of a wide and horizontal trend and normally this would pose a good selling opportunity, but a break-up through the top trend line at $46.20 will give a strong buy signal and a trend shift may be expected. Given the current horizontal trend you can expect Halliburton Company with 90% probability for the price to range between $39.63 and $46.94 in this timeframe. Investors sometime notices large volume spikes after a breaking of the horizontal base, and stocks rarely experience a roller coaster ride from the bottom of a trend. Stocks jumping at a middle end of a horizontal base are therefore followed in search of a potential runner.
Halliburton Company Technical Signals
HAL has witnessed its short term MA triggering a sell signal. Meanwhile, however, the long-term average has generated a buy signal. When the short-run moving average rises above its longer-term trend, a buy signal is created. This is because a short-run moving average that crosses its long-run moving average counterpart is seen as the initiation of an upward trend. On additional rally, the share price will meet short term resistance at around $45.45. On a drop, the stock is likely to find some support over the long run, which begins at $41.74. A buy signal will be generated if it crosses above the short term moving average. Meanwhile, however, a price crossing below the long term moving average will generate a sell signal. Its pivot point low generated buy signal on Tuesday October 03, 2017, which calls for additional surge until the stock forms a new pivot point high. Some other technical concerns emerged as well, putting in risk the future growth of the stock in the next couple of days. The downbeat movement of both volume and price during the recent session is interpreted as a good sign because traders usually believe falling stock should see declining volume.
Halliburton Company (NYSE:HAL) Support And Resistance Levels
In case of pullback, the next support the price will capture from accumulated volume will not be far away from current price at $42.51 and $41.78. In case of gains, the next resistance from accumulated volume will not be far away from today’s level at $45.38, $45.58 and $45.83.
It is important to note, however, that the stock needs to make its way through natural risk while testing a key support level. Once this support is broken, another support level will be to be established at a lower level. Turning back to this stock, Halliburton Company approaches the first support point just current price at $42.51. In case of a break, the next support we will see from accumulated volume is going to be at $41.78 and $39.83. Accumulated volume is going to prevent the price from rising further at $45.38 and this action will lead the price to take a temporary pause or stay muted for a few days.
Halliburton Company (HAL) Risk Assessment
A volatility based measure Bollinger Bands suggests this stock poses high risk. In the most recent session, the stock price hovered around $0.45 between high and low, or 1.00%. The average volatility for the past week stood at 1.40%.
The stock is overbought on RSI14 and the RSI has been falling for the last couple of days. This together with the fact that the stock is in the upper part of the trend poses a possible good selling opportunity for the short-term trader. However, one should note that some stocks may go long and hard while being overbought. The RSI above 70 combined with the trend position poses greater risk so increased volatility should be expected. The stock correction is due. The decline may accelerate to the downside in the near term but it is reasonable to consider what the key support levels may be that would support a bounce back to the upside for stock.