That recent strength has established HAL solidly above its 200-day moving average ( ) since early August. It’s squeezed into a very tight range as it digests those gains. Notice how is back to the lowest levels of the year.
While coronavirus has undeniably hurt the energy sector, the market may now be looking for a turn. Cyclicals like industrials and materials are climbing, along with bond yields. Crude-oil inventories also fell more than expected this week.
In another interesting development, the Baker Hughes Rig Count rose last week for the first time since the beginning of March. This is a key fast-moving indicator for the kind of services HAL provides.