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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