After months of tough rhetoric and a spiraling geopolitical crisis, cooler heads have apparently prevailed in the Iran crisis, leaving Halliburton (HAL) in an odd position. In large part because of the escalating tensions, HAL stock soared. And while it’s still performing well on a year-to-date basis (up almost 17%), the security finds itself down nearly 19% in the trailing month.
Worse yet, the negative acceleration has been so bad that HAL stock has ignominiously earned a Weak Sell rating from the Barchart Technical Opinion indicator. Caution is understandable given how interconnected Halliburton is to the geopolitical narrative. In a nutshell, the closing of the Hormuz strait led to international oil indices shooting higher, in turn raising the West Texas Intermediate (WTI) price.
