HAL breaks below Thursday's low
Halliburton Company (HAL) Technical Analysis Report for May 29, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, HAL finished the month 11.9% higher at 11.75 after losing $0.36 (-2.97%) today, strongly underperforming the S&P 500 (0.48%). Closing below Thursday's low at 11.94, the market confirmed its breakout through the previous session low after trading up to $0.54 below it intraday.
Daily Candlestick Chart (HAL as at May 29, 2020):
Friday's trading range has been $0.78 (6.4%), that's above the last trading month's daily average range of $0.66. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for HAL.
Even with a strong opening the share closed below the prior day's open and close, forming a bearish Engulfing Candle. The last time this candlestick pattern showed up on April 9th, HAL lost -4.38% on the following trading day. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical resistance level at 12.21 (R1).
While still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Engulfing Candle" stand out. Its common bearish interpretation has been confirmed for Halliburton. Out of 84 times, HAL closed lower 53.57% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 54.76% with an average market move of -0.85%.