Halliburton Rises 1.62% in 3-Day Rally as Technicals Signal Bullish Momentum

Halliburton (HAL) gained 0.44% in the latest session, marking its third consecutive daily advance with a cumulative 1.62% rise during this period. Closing at $22.61, the stock traded within a narrow range between $22.00 and $22.65 on moderate volume of 13.4 million shares.
Candlestick Theory
Recent candlestick patterns reveal constructive price action. The three consecutive bullish candles indicate sustained buying pressure, forming a minor "Three White Soldiers" pattern that typically portends continuation. Key support is established at $22.00, validated by multiple tests between September 15-17, including a long lower wick rejection on September 16. Resistance is evident near $22.70, coinciding with the September 18 high and July 24 peak. The absence of significant upper wicks in the current rally suggests sellers aren't aggressively defending this level.
Moving Average Theory
The moving average configuration reflects a neutral-bullish near-term bias. The 50-day MA ($21.92) crossed above the 100-day MA ($22.08) in late August, while the 200-day MA ($22.50) remains overhead resistance. Price is currently trading above the 50-day and 100-day averages but below the 200-day, indicating intermediate-term recovery within a longer-term consolidation phase. A sustained break above the 200-day MA would signal improving long-term momentum.
MACD & KDJ Indicators
MACD (12,26,9) shows a bullish crossover above the signal line, with the histogram expanding positively since September 10 - confirming strengthening momentum. The KDJ oscillator (9,3,3) presents a constructive setup: K-line (68) and D-line (63) are rising in neutral territory after exiting oversold conditions (<30) in early September. Neither indicator shows overbought warnings yet, though KDJ's J-line at 78 approaches overbought thresholds. This alignment suggests upward momentum may persist near-term.
Bollinger Bands
Bollinger Bands (20-day, 2σ) show contraction in late August followed by expansion, signaling volatility resurgence. Price has ascended from the lower band ($21.30) to test the upper band ($22.90), reflecting strengthening bullish pressure. The breakout above the middle band (20-day MA at $22.30) on September 19 was accompanied by above-average volume, supporting its validity. Current proximity to the upper band implies near-term consolidation is possible but doesn't negate the bullish breakout signal.
Volume-Price Relationship
Volume analysis confirms key price movements. The September 10 rally (+3.91%) occurred on 139% of average volume, validating bullish conviction. Similarly, the September 19 breakout (+0.67%) registered 24.5 million shares - the highest volume in 30 sessions - confirming resistance breaches. Recent gains occurred on diminishing volume, suggesting short-term exhaustion, though the absence of distribution days (high-volume declines) since September 3 supports underlying demand. The volume-weighted average price (VWAP) sits at $22.25, acting as dynamic support.
Relative Strength Index (RSI)
The 14-day RSI (62) is trending upward from oversold territory (28.6 on September 3) but remains below overbought thresholds. Bullish divergence occurred in early September when price tested $21.10 (below August's $21.60 low) while RSI formed a higher low. Current readings suggest room for upside before reaching overbought conditions (>70), though the indicator's approach to 65 warrants monitoring for potential near-term resistance.
Fibonacci Retracement
Applying Fibonacci to the June 24 high ($23.19) and September 9 low ($21.10) reveals key levels: The 61.8% retracement ($22.31) was breached on September 19, turning support. The 78.6% level ($22.60) aligns precisely with today's close, making it immediate resistance. Full retracement would target $23.19. Confluence exists at $22.00 (38.2% Fib and horizontal support), which should contain pullbacks if the bullish structure holds.
Confluence and Divergence Observations
Significant confluence appears at $22.30-22.35 (61.8% Fib, VWAP, and 200-day MA), now converted to support. The $22.70-22.85 zone represents critical resistance, combining July 24 and September 18 highs with the June-September trendline. No major bearish divergences are present currently, though KDJ's approach toward overbought territory while volume moderates warrants caution. Probabilistically, the weight of evidence suggests continued upside toward $23.00-23.19 if $22.60 closes decisively above, supported by MACD momentum, volume confirmation of key breaks, and RSI trajectory.