• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Doug Kass
    • Bruce Kamich
    • Jim Cramer
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • Trifecta Stocks
  1. Home
  2. / Investing

Schlumberger Needs More Base Building to Turn Bullish

Let's review the charts and indicators.
By BRUCE KAMICH
Dec 10, 2020 | 10:16 AM EST
Stocks quotes in this article: SLB

Viewers of Mad Money love the "Lightning Round" segment of the show. This is when callers ask Jim Cramer about stocks they are interested in. On Wednesday, one viewer asked about Schlumberger (SLB) : "I'm not a big fan of Schlumberger anymore," responded Cramer. 

 
Let's see what the charts of SLB look like.
 
In this daily bar chart of SLB, below, we can see how prices declined sharply from January to March. SLB made a low with the broad market in March and then managed to double in price from the low in just a few months. The gains did not last and prices retreated into late October.
 
The recent price recovery shows some improvement in the indicators. Prices are trading above the rising 50-day moving average line which is ready to cross above the declining 200-day line for a bullish golden cross.
 
The daily On-Balance-Volume (OBV) line shows a little improvement the past six weeks suggesting that buyers of SLB have finally become more aggressive.
 
The Moving Average Convergence Divergence (MACD) oscillator has moved above the zero line for a buy signal after several months of hugging the zero line. An improvement. 
 
 
In this weekly bar chart of SLB, below, we can see that prices have been in a long decline from early 2018. Not pretty and a reminder it does not pay to fight the trend.
 
SLB has recently rallied above the now bottoming 40-week moving average line. This is a good sign but more base building is likely.
 
The OBV line shows a turn up in recent weeks and the MACD oscillator is now close to crossing the zero line. 
 
 
In this daily Point and Figure chart of SLB, below, we can see that prices have met and exceeded the upside price target in the $20 area. 
 
 
In this weekly Point and Figure chart of SLB, below, we can see that the $43 area is a potential longer-term price objective.  
 
 
 
Bottom line strategy: The various indicators we favor have improved but the big decline SLB suffered from 2018 means a much bigger base formation is needed. The weekly Point and Figure chart shows an attractive price target but more sideways consolidation is likely in the months ahead.
Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Employees of TheStreet are prohibited from trading individual securities.

TAGS: Economy | Investing | Markets | Oil | Stocks | Technical Analysis | Trading | Energy | Oil Equipment/Services | Mad Money

More from Investing

When it Comes Time to Sell, Will You Act or Will You Freeze?

James "Rev Shark" DePorre
Jan 16, 2021 10:00 AM EST

Why don't more people embrace the ease and power of selling stocks? Why do they freeze and do nothing as losses build?

Cybersecurity Stocks that Lagged in 2020 Could Get Boost from SolarWinds Hack

Eric Jhonsa
Jan 16, 2021 8:00 AM EST

The hack stands to drive an uptick in corporate and government spending to protect both on-premise and cloud assets.

Hungry Traders and Stock Opportunities Aren't Likely to Go Away Soon

James "Rev Shark" DePorre
Jan 15, 2021 4:40 PM EST

It doesn't take much time for stocks with strong momentum to reset and continue on their way.

At What Price Is Ballard Power Systems a Buy?

Bruce Kamich
Jan 15, 2021 3:09 PM EST

Let's check out the latest charts of BLDP.

United Parcel Service Is Testing Key Support

Bruce Kamich
Jan 15, 2021 2:30 PM EST

A look at the charts of UPS.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 09:01 AM EST JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    When it's time to sell, will you act or freeze?
  • 08:35 AM EST GARY BERMAN

    Wednesday Morning Fibocall for 1/13/2021

    Lower highs... SPX (Long-Term View) The 1/8/2...
  • 08:07 AM EST GARY BERMAN

    Tuesday Morning Fibocall for 1/12/2021

    Watch if the recent trend of lower highs continues...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2021 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login