Chart: HAL

HAL (Halliburton Co.) wiped out a month’s worth of gains on an insane amount of volume. However, it did not knock out any major resistance points and handles the 50 day MA quite well. Take a look at the tail the stock printed as the stock briefly dipped below the moving average. There seems to be strong support at that level.

While I always watch HAL, I won’t touch it unless it does on of two things. Either it :

  • breaks near term resistance at $32.50, or
  • drops into the $28-29 range.

There’s a lot of support in the $28-29 range, so this area would present a good buying opportunity. Shorter term traders could place a stop just under this range, while longer term traders could do so under the next level of support at $26.50. Note that this area could also provide another good buying point.

For the bears out there, I currently do not see a good, *low risk* short setup. You’ll have to wait until price by volume support is broken at $28.

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