There were also two more opportunities (within a few days) to participate in the move. On the third day after the breakout, the stock gapped up again and surged above 56.

Returning to the analysis of Halliburton (HAL), we can observe that the high of the November trading range (32 to 44) was more than 20% larger than the October low, making this range relatively significant in terms of price. Since the September support level broke to form our first resistance level, we were preparing to establish a resistance zone after the November high formed (likely around early December). However, we were still uncertain if a larger trading range would emerge.

The subsequent December low was slightly higher than the October low, indicating that a trading range was being established, and we were ready to enter the support zone. As long as the stock trades within the boundaries set by the support and resistance zones, we consider the trading range to be valid. The support level can be viewed as a buying opportunity, while the resistance level can be seen as a selling opportunity.

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*Analysis of support and pressure levels is one of the basic operations of the stock market entry strategy, which can be used to manage the take profit and stop loss settings, entry and exit points to determine, etc.. However, there are many other factors that affect stock price changes, and support and pressure levels are often breached, so when determining the strength of their effects, they need to be analyzed specifically in relation to the overall market situation.*