After spending three years from early 2017 to early 2020 in the red unfavored zone of the SIA S&P 500 Index Report, oilfield service provider Halliburton (HAL) has spent most of the last year in the Green Favored Zone. Yesterday, HAL finished in 102nd place, up 21 spots on the day and up 274 spots in the last month.
Climbing up off another higher low that kept their underlying uptrend intact, Halliburton (HAL) shares closed at their highest level in over two years yesterday. The shares are currently sitting just below the $25.00 round number, where a breakout would complete a bullish Ascending Triangle base which has been forming for over a year now and would confirm the start of a new advance.
Should that occur, next potential upside resistance would appear in the $31.00 to $32.00 area based on measured moves off of recent lows and a place where the shares faltered previously, followed by the $35.00 round number. Initial support currently appears near $22.25 then $22.00.
Back in the winter, Halliburton (HAL) snapped a long-term downtrend line, then paused to consolidate for about three months. This week, the shares have broken out to the upside, completing bullish Double Top and Spread Double Top patterns, signaling that accumulation has resumed and a new upleg has commenced.
Based on a series of vertical and horizontal counts, sometimes combined with previous column highs and lows, next potential upside resistance tests on trend appear near $27.10, $28.20, $31.70, and $33.65. Initial support appears near $22.65 based on a 3-box reversal.
With a bullish SMAX score of 9, HAL is exhibiting strength across the asset classes.
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