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Shares of Halliburton (HAL) - Get Halliburton Company Report are starting the week off with a bang, rallying about 8% in recent Monday trading.

The rally caught some investors off guard, given that Halliburton reported in-line earnings results and a revenue miss. But surprisingly enough, a rally on negative news can be a bullish reaction.

It's a sign that Wall Street has become so negative on a stock that even disappointing results such as these weren't as bad as investors and analysts were expecting.

A similar development occurred on Friday with Schlumberger (SLB) - Get Schlumberger NV Report , causing us to ask whether the stock had bottomed.

Monday's action now has us wondering whether Halliburton, like Schlumberger, may have finally hit rock bottom as well. It makes Halliburton a perfect candidate for Real Money'sStock of the Day

Let's look at the chart.

Trading Halliburton Stock

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Earnings of 34 cents a share were in line with estimates, while sales of $5.55 billion decreased 10% year over year and missed expectations by $270 million. Still, investors on Monday are finding reasons to buy the stock.

If Halliburton stock can maintain its gains, it may well solidify a bottom. That said, it's got its work cut out for it, at least from a technical perspective.

With Monday's early rally, shares are reclaiming the 50-day moving average after successfully holding the $18 level as support. From here, the $20.50 to $21 area will be very key.

There HAL stock will find downtrend resistance (blue line), the declining 100-day moving average and the 78.6% retracement. If this area acts as resistance, it will be important to see that Halliburton stock can find support and avoid retesting the $18 area. For instance, it wouldn't be bearish for shares to get rejected from the $20.50 to $21 area if it found support from the 50-day moving average.

Over $21 and there could be some room to run. $24 was a notable level of resistance in the summer, while the 61.8% retracement is up at $24.30. The declining 200-day moving average is currently at $24.68, although it very well could be below $24 by the time HAL stock tests it.

On the flip side, a move below $18 would be a very negative development for Halliburton stock. It would put the shares below the pre-earnings lows and put the August low of $16.81 on the table.

The bottom line: Above $21 is bullish, above the 50-day moving average is constructive and below $18 is bearish.

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This article is commentary by an independent contributor. At the time of publication, the author had no positions in the stocks mentioned.