Halliburton Ripening for a Buy

This article originally appeared on RealMoney.com on Sept. 3, 2014 at 8:50 a.m. To read more content like this AND see inside Jim Cramer's multi-million dollar portfolio for FREE... Click Here NOW.

I want to stalk Halliburton (HAL)  on the buy side -- and here is my case in favor of the stock, starting with the weekly chart.

Halliburton (HAL) -- Weekly
Source: Dynamic Trader

This chart shows a bullish pattern of higher highs and higher lows. The most recent decline within the larger uptrend -- which has brought the stock down by $8.10 so far -- is now only similar to some of Halliburton's prior declines since around April 2012. Those prior slides had amounted to $9.04, $8.17, $7.19 and $8.92. Nice, healthy rallies started after all of those prior declines -- which is why I'm watching the stock for a similar move now, against price support at the $65.29-to-$66.16 area.

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On the daily chart, meanwhile, you can see the same symmetry projections -- but these also overlap other key Fibonacci price relationships, such as a 0.618 retracement of a prior major swing and some price extensions of other moves. These additional price relationships strengthens the trade setup.

Halliburton (HAL) -- Daily
Source: Dynamic Trader

The key price zone on the daily chart, which includes these other price relationships, comes in between $65.16 and $66.22. I can count at least eight price relationships within that area! Now, the fact that we're looking a big price cluster does not mean this level will definitely hold up as support, but it does mean that this area constitutes a rather important decision.

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