Shares of oil services provider Schlumberger (SLB) have declined since the middle of June. Indeed, the descent has been swift and a little jarring.
Is the selloff over? Is it safe to become a buyer?
The company is ready to report earnings Friday before the opening, so let's check on the charts and indicators.
In the daily bar chart of SLB, below, we can see that prices made a low in the middle of July but with no "retest" move. A retest pullback could be underway now. The funny thing about retests is that you don't know if they will be successful ahead of time. The slope of the 50-day moving average line is negative and the 200-day line is cresting.
The On-Balance-Volume (OBV) line turned lower in early June and it may be premature to suggest that the OBV line is making a low in July. The Moving Average Convergence Divergence (MACD) oscillator has crossed to a cover shorts buy signal. It is a long way to the zero line.