TradeStation

Haliburton: Will Bears Pounce at Key Level?

Short
NYSE:HAL   Halliburton Company
Energy has resumed its bearish ways lately as geopolitical risk goes out of the market, but plenty of supply keeps coming in! Just yesterday, International Energy Agency Head Fatih Birol predicted an oil surplus of 1 million barrels in the first half.

Halliburton is one of the biggest names in the sector, and one of the most active underliers in terms of options activity. That creates the potential for leveraging even small moves with puts.

HAL is also at a key level around $24. Chart watchers may look for a retest of recent lows near $18 -- or lower -- if that area breaks. MACD is signaling bearish momentum, as well.

The company reported strong earnings yesterday, which has supported its stock price. But rival Schlumberger fell despite similarly positive news on Friday. Will HAL follow?

"The trend is your friend," as the old saying goes. The long-term trend has been downward in energy. And now, after a period of consolidation, the bears may be prowling again in this sector.

Comments