Halliburton Co. had a sharp decline from $57.77 (U.S.) in July 2011 to $27.21 in October of the same year (A-B), had a recovery rally to $40.43 (C) and then settled in a large trading range mostly between $27.50 and $38.50 (dashed lines). The recent rise above this trading range (D) signaled the breakout and the start of a new major up-leg. Halliburton is currently in the midst of a minor pull back, but only a decline below about $35 would be negative.
Point & Figure measurements provide targets of $49 and $54. The large trading range (dashed lines) supports higher targets.
Monica Rizk is the senior technical analyst for Phases & Cycles Inc. (www.phases-cycles.com). Ron Meisels is a contributor to the www.NA-marketletter.com website and Tweets at @Ronsbriefs. They may hold shares in companies profiled. Please see the site for a glossary.
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