Halliburton (HAL) has hammered out a large base pattern the past two years. This pattern is impressive and should be able to support a major upside move. Do your research, but getting in now is likely to prove to be a low risk opportunity with significant upside, in my opinion.
In this daily chart of HAL, below, we can see a strong uptrend from the January/February lows. The 50-day moving average line and the 200-day line are both pointed up, telling us that we are in a rising market.
The On-Balance-Volume (OBV) line has been moving sideways with prices the past five to six months but it is up from the lows at the beginning of the year. If HAL breaks out above $50 the OBV is probably going to confirm the move with new highs.
The trend-following Moving Average Convergence Divergence (MACD) oscillator has been above the zero line since early October and it looks poised to give us a new buy signal.
If you stand back two feet from your computer monitor or stretch your hand out on your phone you should be able to see the base pattern that starts in early 2015 (see chart below). The 40-week moving average line is pointed up as is the weekly OBV line. The MACD oscillator turned bullish in May.
A weekly close above $50 will complete the base and give us a price target of $70 -- the height of the base added to the breakout level.
Use a sell stop below $45. Small risk for a possible large gain -- that is the way to manage your risk capital.