Currently we have a “Bullish Divergence” formation (not confirmed) occurring on Halliburton (HAL) on the weekly-chart as you can see below.
Rather than calling the bottom here, what I am looking for is a confirmation from the price-action and the oscillators. And once we get the ball rolling, this thing can get into an uptrend for about 9 to 12-months which will give us a great opportunity for a position-trading.
So as you can see in the chart below, back in late-2011 to early 2012, we’ve had similar formation occurring on the oscillators and the price-action. Generally, this means, there are some clandestine-buyers slowly buying things here, you can look at them as a “value buyer” where they feel that Halliburton is “cheap” at this price. But one thing we have to be aware of these guys is that they are not long-term. They are testing the water and see if anything happens; they will exit as soon as something doesn’t appear to be right.
So it’s crucial that we need substantiate these signals from the price-action before triggering to make sure that the trend is developing to the upside; because, obviously, current trend is down on Halliburton (HAL).
So be patient, and let the price-action dictate where this stock is going. This is a very early stage, so it’s probably going to take another 3 to 5-months before the real opportunity arises to pull the trigger. We are currently watching this stock to initiate probably sometime early next year, we can probably play this like 2013-2014.