2 Charts That Show Why Halliburton Is Likely Going Lower

The following stock has been highlighted by VantagePoint Software, an artificial intelligence platform that provides market forecasts 1-3 days in advance. For a free demo click here. 

It's been a rough summer for Halliburton Company (NYSE: HAL). Shares of the Houston-based oil and gas company are down 25 percent since topping out at $54.91 on May 17, despite a Q2 earnings report in-line with Wall Street estimates and somewhat stable oil prices. 

HAL finds itself in the midst of a prolonged downtrend, as you can see on the two charts below. The first, a one-month chart, shows the big gap down following the recent earnings report. Though the stock bounced off the $39 level, it appears to be once again headed there, according to VantagePoint Software. 

The blue line on these charts represents a predicted moving average, while the black line represents a simple 10-day moving average. When the blue line is above the black, that represents an uptrend. Vice versa for a downtrend. 

The red-green bar at the bottom of the chart is a neural index, which forecasts whether a stock will move up or down over the next 48 hours, and the grey candle is the predicted range for the current trading day. In this case, the neural index and grey candle both predict that HAL will continue lower at least through Tuesday's session. So far, that appears to be the case. 

This next chart shows HAL over the last three months. You can see how despite some periods of green the stock has mostly made lower lows during this time, and the predicted moving average has pretty consistently stayed below the 10-day moving average. 

Both these charts indicate that HAL is likely due for more downside in the near-term. Bullish traders may want to wait for the stock to show several days of upward movement before looking for a way in. 

VantagePoint Software is a content partner of Benzinga. To see what their indicators say about other stocks, futures, commodities or ETFs, or to get a free demo, click here.