Schlumberger Ltd. (SLB) has been trying to stabilize around $35. We can see a low in late December and a retest in early June (chart below). Will prices drift sideways to lower or can we hold above $35 in the weeks ahead?
Let's check on the charts and indicators.
In this daily bar chart of SLB, below, we can see that prices are below the declining 200-day moving average line. SLB recently closed above the declining 50-day moving average line and just retested the line.
The daily On-Balance-Volume (OBV) line has only made a slight improvement since early June so we cannot say that buyers have really turned more aggressive.
The Moving Average Convergence Divergence (MACD) oscillator is above the zero line but it has crossed to the downside for a take profits sell signal.
In this weekly bar chart of SLB, below, we can see that prices have been in a downtrend for most of the past three years. SLB is below the declining 40-week moving average line.
The weekly volume bars this year do not show increasing volume and the weekly OBV is neutral. The MACD oscillator crossed to the upside from below the zero line for another cover shorts buy signal.
In this Point and Figure chart of SLB, below, we can see a downside price target of $34.15.
Bottom line strategy: It looks like SLB could retest the December and June lows around $35 soon but we cannot rule out new lows for a move down in the weeks ahead. A good base pattern on SLB will take more time.
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