HAL closes lower for the 2nd day in a row
Halliburton Company (HAL) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, HAL finished the week 1.47% higher at 22.12 after edging lower $0.07 (-0.32%) today on low volume, slightly underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (HAL as at Feb 14, 2020):
Friday's trading range has been $0.51 (2.29%), that's below the last trading month's daily average range of $0.61. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for HAL. Prices continued to consolidate within a tight trading range between 21.84 and 22.56 where it has been caught now for the last three trading days.
Notwithstanding a strong opening the stock closed below the previous day's open and close, forming a bearish Engulfing Candle.
Prices are trading close to the key technical resistance level at 22.56 (R1). The share found buyers again today around 21.84 for the third trading day in a row after having found demand at 21.90 in the prior session and at 21.90 two days ago. The last time this happened on December 20, 2019, HAL gained 1.63% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the nearby swing high at 22.56 where further buy stops might get triggered. With prices trading close to this year's low at 21.20, downside momentum could speed up should the market break out to new lows for the year.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Halliburton. Out of 322 times, HAL closed higher 54.35% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 50.62% with an average market move of 0.15%.