Halliburton’s Potential Bearish Flag
Energy stocks continue to lag as the market anticipates greater supply and weaker demand from China. The backdrop may be creating downside risk in Halliburton, a key provider of oilfield services.
The first pattern on today’s chart is the January low just below $33. Prices bounced there in June and July. They slid below in August, which may be viewed as a breakdown.
A small rising channel has developed since then. Some traders may view that as a bearish flag. (Notice a similar formation in May, followed by a drop.)
Third, the gap lower on July 19 after revenue missed could reflect weakening fundamentals.
Next, our 2 MA Ratio custom script in the lower study shows the 8-day exponential moving average (EMA) staying below the 21-day EMA. That may reflect a bearish short-term trend.
The longer-term trajectory could additionally be negative: HAL made a lower quarterly high in April versus October. The 50-day simple moving average (SMA) also had a “death cross” below the 200-day SMA in June.
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TradeStation Securities, Inc. and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., both operating, and providing products and services, under the TradeStation brand and trademark. When applying for, or purchasing, accounts, subscriptions, products and services, it is important that you know which company you will be dealing with. Visit https://www.TradeStation.com/DisclosureTSCompanies for further important information explaining what this means.
The first pattern on today’s chart is the January low just below $33. Prices bounced there in June and July. They slid below in August, which may be viewed as a breakdown.
A small rising channel has developed since then. Some traders may view that as a bearish flag. (Notice a similar formation in May, followed by a drop.)
Third, the gap lower on July 19 after revenue missed could reflect weakening fundamentals.
Next, our 2 MA Ratio custom script in the lower study shows the 8-day exponential moving average (EMA) staying below the 21-day EMA. That may reflect a bearish short-term trend.
The longer-term trajectory could additionally be negative: HAL made a lower quarterly high in April versus October. The 50-day simple moving average (SMA) also had a “death cross” below the 200-day SMA in June.
TradeStation has, for decades, advanced the trading industry, providing access to stocks, options and futures. See our Overview for more.
Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options or futures); therefore, you should not invest or risk money that you cannot afford to lose. Online trading is not suitable for all investors. View the document titled Characteristics and Risks of Standardized Options at https://www.TradeStation.com/DisclosureOptions. Before trading any asset class, customers must read the relevant risk disclosure statements on https://www.TradeStation.com/Important-Information/. System access and trade placement and execution may be delayed or fail due to market volatility and volume, quote delays, system and software errors, Internet traffic, outages and other factors.
Securities and futures trading is offered to self-directed customers by TradeStation Securities, Inc., a broker-dealer registered with the Securities and Exchange Commission and a futures commission merchant licensed with the Commodity Futures Trading Commission). TradeStation Securities is a member of the Financial Industry Regulatory Authority, the National Futures Association, and a number of exchanges.
TradeStation Securities, Inc. and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., both operating, and providing products and services, under the TradeStation brand and trademark. When applying for, or purchasing, accounts, subscriptions, products and services, it is important that you know which company you will be dealing with. Visit https://www.TradeStation.com/DisclosureTSCompanies for further important information explaining what this means.
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