Haliburton Weakness Setting Up Strong Reward To Risk Trade

Haliburton (HAL) had risen close to 70% from its February low to its early June high, but since that time has simply consolidated those gains.  Over the past two weeks, HAL has declined close to 10% and is nearing a very important short-term price support level.  The closer it gets to that level, the better the reward to risk appears on the long side.  Check this out:

Note also that throughout this 2016 rally, the daily MACD has been mostly positive and every trip on the RSI into the 40s has resulted in a near-term bottom.  Currently, the RSI resides at 43.  If HAL closes beneath 41.75, I'd re-evaluate.  Until then, short-term weakness looks like a trading opportunity here.

Happy trading!

Tom