Is Haliburton putting in a major double bottom? Just maybe. The stock extended its drop from the April peak to a 25% sell off this week. This steep decline drove shares back down to the December 2018 lows. Today HAL is rebounding. Its up 3.8% at mid day and is a top 5 SP 500 gainer. Others have noticed: CNA Financial, and lat Reinsurance Ltd. are buyers.
Highlights: HAL has been under increasing downside pressure over the last five sessions. Has this selling wave reached a climax just as the 2018 lows have come into play?
HAL has been tracing out a divergent low in its daily MACD indicator since the December lows.
On the downside, a close below $24.00 would be an indication that more basing will be needed before HAL is set for a substantial rebound.
At current levels we regard HAL as a low risk buy.
At time of publication we are long HAL in some managed accounts.