When we reviewed the chart of Schlumberger Ltd. (SLB) on May 11 we said that, "SLB looks like it can pull back with weakness in the broad market and retest the $28 area... consider that retracement a buying opportunity, risking a decline to $24 or a new low for the move down. The weekly Point and Figure chart suggests we could see an advance to the $48 area longer-term."
With SLB back up near its June zenith, another look at the charts and indicators looks like a good idea.
In the updated daily bar chart of SLB, below, we can see that the stock did pull back and retest the $28 area. Traders got a number of opportunities to buy at $28 or better. Our stop at $24 was never reached as SLB made a small double bottom at $26. Prices turned higher in September and are now within striking distance of a new high. The shares are trading above the rising 50-day and 200-day moving averages.
The rising On-Balance-Volume (OBV) line is a good sign that buyers are aggressive now and the Moving Average Convergence Divergence (MACD) oscillator is bullish.