Haliburton Co Stock Code HAL.NYS
Outlook
Price closed below the cloud overnight after holding inside the cloud for 2 weeks. An attempt to move above the cloud as well as closed a small gap failed before price dropped below the cloud. Inability to close that gap could be a sign of a bearish trend. Price also broke a 3-month uptrend line, negating the bullish trend before the break down. Conversion and Base lines had a bearish crossover earlier, confirming the bearish trend in progress. Lagging Span is also below price of 26 periods ago but is still above the cloud. MACD is bearish with both its lines below the zero line. MACD is continuing to move lower as well. A move below recent low at US$21.20 would accelerate the down trend and starts a move to US18.79 price support
Strategy
$21.80 Short Sell
$18.80 Price Target
$22.90 Risk Management Stop
3 weeks Trade Duration
Starbucks Corporation Stock Code SBUX.NAS
Outlook
Price tested the cloud and broke below the cloud for 2 days before rebounding back above the cloud. Another decline brought price to test the cloud again but price managed to hold above the cloud on this occasion. Price closed yesterday just above the cloud. Base and Conversion lines have not yet had a bullish crossover at the moment but Lagging Span has moved above the cloud although it is still below price of 26 periods ago. We view this as due to the early stage of the bull cycle where the lagging indicators have yet to turn around. Both MACD lines may be below the zero lines at the moment but MACD lines are turning around, hinting of a possible turnaround in the trend. If price can stay above US85, the next movement could be to test the gap resistance at US90.60. Above this resistance, price is likely to test the previous high at US$94.13.
Strategy
$87.50 Buy
$90.50 Price Target
$84.90 Risk Management Stop
3 weeks Trade Duration
