Within the larger January-April coil pattern that we discussed yesterday in Halliburton (HAL), let’s have a look at the hourly chart from the most recent pivot low (within the coil) at 29.25 from March 26. The weight of my technical work is telling me to regard the upmove from March 26 at 29.25 to the April 6 high at 32.43 as the start of a new upleg that should revisit the January high at 34.87. All of the action in HAL since the 32.43 high represents a sideways consolidation that is digesting the 11% upmove. As long as 30.90/60 contains any further weakness within the digestion period, the technical work will remain constructive in anticipation of another upmove that should hurdle the March-April highs at 32.43-32.83.

 

Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com.