Halliburton Company (NYSE:HAL) is a very interesting stock at this point of time as it finds a lot of favors from the analysts even when the price action is not that supportive for the bulls. The latest upgrade has come from Vetr in the form of a “Strong buy” rating from the previous “buy” with a price target of $47.25. it is just one of the positive recommendations among many as twenty one analysts keep a “buy” recommendation for the stock with seven more assigning “hold”. The consensus 12-month target for the stock comes at the much higher level of $65.
Coming to the technical charts, it is clearly visible that the most positive thing the stock price has done in the last 3 months is not registering a new low. The most the bulls have got is a feeble rally of 8% from the $40 levels.
Halliburton Company (NYSE:HAL) found a long term bottom in the middle of 2012, around $26 and then began a bull market for a 150% rise in just 2 years. But now, the investors must accept that the stock is in a bear market as most of the gains have been erased in a much shorter time. One could argue that the support level near $36-37 may push the price higher now, but the volume pattern doesn’t support any bullish speculation. The volume has increased on the drops and decreased on any rally, clearly a sign of major distribution going on.
The daily chart shows a large gap between $45 and $47, which is going to act as a very strong resistance area in the short term. As long as the bears manage to keep the price below $47, sever supply pressure can be expected and a new low below $36 can’t be ruled out.