During the Lightning Round segment of Mad Money Wednesday night one caller asked Jim Cramer about Halliburton Co. (HAL) . "Halliburton is up big. I recommend taking out your costs and letting the rest run," was Cramer's advice.
Let's check out the charts of HAL Thursday morning.
In the daily bar chart of HAL, below, we can see that prices collapsed rapidly in February and March before reaching a single-digit low in late March. Trading volume was very heavy in March and April perhaps telling us that weak hands were sellers and other, stronger hands were buyers.
HAL rallied to early May and then traded sideways till early November when another uptrend took hold. Prices are now up more than four-fold from their lows.
While HAL is trading above the rising 50-day and 200-day moving average lines we can see that the On-Balance-Volume (OBV) line has been weak since September indicating that sellers of HAL have been more aggressive.
The 12-day price momentum study shows lower highs from November into the new year and this is a bearish divergence when compared to prices making higher highs. The pace of the advance is slowing and that is often a "heads up" that someone may be a scale-up seller.