The share price of Schlumberger Ltd. (SLB) has firmed up the past few weeks and a number of our favorite technical indicators have improved too. Let's drill down on the charts to see what strategy makes sense right now.
In the daily bar chart of Action Alerts PLUS holding SLB, below, we can see both a decline from $80 to $35 but as well a rebound from $35 to $45. On a percentage basis the recent rally is the biggest in the past year. Prices have gapped above the bottoming 50-day moving average line with increased trading volume -- a bullish signal.
The daily On-Balance-Volume (OBV) line shows a positive trend now and the Moving Average Convergence Divergence (MACD) oscillator is close to moving above the zero line for an outright go long signal.
In this weekly bar chart of SLB, below, we can see that on this longer time frame prices are below the declining 40-week moving average line. The weekly OBV line shows a good rise now and the weekly MACD oscillator is close to crossing to the upside for a cover shorts buy signal on this time frame.
In this Point and Figure chart of SLB, below, we can see a big decline, but also an upside price target of $54.
Bottom-line strategy: Crude oil futures have made an important low and SLB may have as well. A pullback or retest of the recent December low may or may not happen so traders who want to get long SLB or add to longs should be buyers at current levels.