Want to join InvestingHaven’s research team? Interested in analyzing markets, charts, stocks? Or just writing? Contact us >>

Halliburton Close To A Bear Market

Crude oil closed the day with a loss of 5.10 percent. That is huge, and certainly not helping energy stocks like Halliburton which lost 1.6 percent today.

InvestingHaven’s research team observes that investors are very prudent when it comes to energy stocks. Halliburton, a bellwether energy stock, is in bearish momentum. That is not a problem on its own, but the fact that this is happening right at a price level which coincides with major support is very concerning.

As said before, energy stocks were bumping into major resistance in December of last year. Specifically about Halliburton, InvestingHaven made the point that its stock price had to trade at least 3 consecutive weeks above $55 in order to break out. That did not happen, and it was a first bearish signal as explained on the chart (see the * ).

Weakness in crude oil will definitely not help energy stocks. CNBC wrote today that the crude oil market erased most of the gains that followed last year’s OPEC’s output cut. “The slide worsened after OPEC delegates downplayed the chance that their group and other producing countries would deepen their output cuts when they meet on May 25. They did say current output cuts were likely to be extended.”

At this point in time, crude oil’s decline could be picking up steam because it broke an important support level, says InvestingHaven. If this bearish momentum trend continues, it will drive Halliburton to a structural breakdown, and that will be bad for the energy sector. It could mark the start of a structural bear market in the energy market.

Follow official Ethereum prices in real-time. Read daily Ethereum price news on www.ethereumprice.today  >>