Helix Energy Solutions Group ( HLX) looks interesting on the charts. This is a low-priced energy services company that provides specialty services to the offshore energy industry with a focus on well intervention and robotics operations.
In this daily bar chart of HLX, below, we can see that prices soared higher in October, breaking out over the highs of March and April. Prices are digesting their recent gains and trading sideways. HLX is above the rising 50-day moving average line and rising 200-day moving average line. The trading volume has been more active since the middle of June.
The daily On-Balance-Volume (OBV) line made lows in June and late September and is now showing improvement. The Moving Average Convergence Divergence (MACD) oscillator is above the zero line but has crossed to the downside for a take profit sell signal.
In this weekly Japanese candlestick chart of HLX, below, prices broke out over the highs of 2022 and also the highs of 2021. HLX is emerging on the upside from a two year consolidation pattern. Prices are above the rising 40-week moving average line.
The weekly OBV line has broken out to a new high to confirm the price breakout. The MACD oscillator gave us a buy signal in October when it crossed above the zero line.
In this monthly Japanese candlestick chart of HLX, below, we can see a large base pattern. A monthly close above $11 will be a major breakout.
In this daily Point and Figure chart of HLX, below, we can see a potential upside price target in the $13 area.
In this weekly Point and Figure chart of HLX, below, we used a five box reversal filter. Here the software projects a $24 price target.
Bottom line strategy: HLX is currently correcting its run-up. This pullback/correction can last further and move lower in the days ahead. Traders should let this play out before looking for a location to go long.
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