Halliburton is one of the more resilient names in the energy sector. It’s up more than 35 percent in the last three months, while the
XLE
is down more than 7 percent in the same period.
That recent strength has established HAL solidly above its 200-day moving average (SMA) since early August. It’s squeezed into a very tight range as it digests those gains. Notice how Average True Range 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.
XLE
is down more than 7 percent in the same period. That recent strength has established HAL solidly above its 200-day moving average (SMA) since early August. It’s squeezed into a very tight range as it digests those gains. Notice how Average True Range 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.
