Halliburton shares continue to trade above $20 support although analysts expect weak Q4 results

Written by: Stanko Iliev
January 18, 2021
  • Halliburton will publish Q4 earnings results on Tuesday, January 19th
  • The covid pandemic impacts the company's business
  • If the price falls below the $20 support level, the next target could be around $18

Halliburton (NYSE: HAL) shares have advanced from $4.25 above $22 since March 2020, and the current price stands around $20.7. The company will publish Q4 earnings results on Tuesday, January 19th, and bad results together with renewed coronavirus concerns could add pressure on the stock price.

Fundamental analysis: Halliburton will publish Q4 earnings results on January 19th

Halliburton is one of the world’s largest oil field service companies that operate in more than 80 countries. Halliburton shares have been moving in an uptrend last several months but renewed coronavirus concerns could add pressure on the stock price.

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Vaccination is progressing slower than expected, while travel restrictions and lockdowns will keep demand for oil at low levels for a while. Halliburton could be a good long-term investment, but now is not the best time to invest in shares because it could weaken below the current price levels in the upcoming weeks.

Halliburton will publish Q4 earnings results on Tuesday, January 19th, before the market open. According to analysts, the EPS estimate stands around $0.14 (-56.3% Y/Y), while the consensus revenue estimate stands at $3.21B (-38.2% Y/Y).

We can’t still be sure when we can see a gradual return to pre-COVID oil demand levels, but once the situation has stabilized, this stock price will be at much higher levels. Last month, the company announced that it would reduce the number of employees as coronavirus continues to depress demand for oilfield services and equipment.

Positive information is that the company deployed several days ago the industry’s first electric grid-powered fracturing operation.

“Electric fracturing aligns with our goal to provide the industry with lower-carbon intensive solutions and our commitment to a sustainable energy future. With Halliburton’s leading electric fracturing capabilities, coupled with an innovative operator like Cimarex, grid power can offer one of the most effective and capital-efficient solutions for electric fracturing,” said Michael Segura, vice president of Production Enhancement for Halliburton.

Halliburton has a good position in the market, and the company will benefit once the situation with the covid pandemic stabilizes.

Technical analysis: Halliburton shares remain in a bull market, but correction could be around the corner

There are some apparent risks when it comes to investing in Halliburton shares currently, but this company will always attract potential investors and traders.

Data source: tradingview.com

When we look at the chart above, we can see that this stock price has advanced from $4.25 above $22, and as long the price is above this trend line, Halliburton shares remain in a bull market. If the price falls on the trend line and if we get a “bullish” confirmation candle, it would be an excellent entry point for short-term traders who are trading with “stop-loss” and “take profit” orders.

If the price jumps above $22, it would be a signal to trade shares, and the next price target could be around $24.

Summary

Halliburton could be a good long-term investment, but now is not the best moment to invest in shares because it could weaken below the current price levels in the upcoming weeks. The covid pandemic impacts the company’s business, but Halliburton’s fundamentals remain stable, and the company will probably not face cash flow problems. Halliburton shares remain in a bull market, but if the price falls below the $20 support level, the next target could be around $18.