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Fan Yang

Hi-Crush Partners (HCLP) Might be Developing a Bullish Reversal

Hi-Crush Partners $HCLP was bearish for most of 2017. After it cracked 23, it fell all the way down to a low of 7.30 in August. But now, price is trading around 10, and possibly developing a bullish reversal with 12 as the first target.

HCLP Daily Chart

(click to enlarge)

Trend Shift: 
- Price action was bullish coming into 2017 but turned bearish in February.
- We can also see that price has flattened since August, and have even rallied a bit. 
- The bullish momentum since August is still alive as shown by the RSI - it as remained above 40 after being able to break above 70.
- Also, price appears to be holding above the 100- and 50-day simple moving averages (SMAs) since breaking above them. This would be a good sign for the bullish scenario.
- We still want to respect the prevailing downtrend. 
- Perhaps the current rally will become just a correction against the downtrend.
- With this consideration, we can look at 12 as a conservative bullish target.
- Note a previous support pivot here as well as the 200-day SMA.