SLB closes within prior day's range
Schlumberger N.V. (SLB) Technical Analysis Report for Oct 12, 2018 | by Techniquant Editorial Team
SLB ended the week -5.83% lower at 59.33 after gaining $0.21 (0.36%) today, significantly underperforming the S&P 500 (1.42%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (SLB as at Oct 12, 2018):
Friday's trading range has been $1.84 (3.08%), that's far above the last trading month's daily average range of $1.20. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for SLB.
One bullish candlestick pattern matches today's price action, the Hammer. The last time a Hammer showed up on March 26th, SLB gained 0.03% on the following trading day.
Prices are trading close to the key technical resistance level at 60.43 (R1).
With another close below the lower Bollinger Band, prices are confirming their strong downward momentum in the short-term. A rally back into the Bollinger Band on the next trading day although might signal a potential change in momentum that could lead to a correction back up towards the center of the Bollinger Bands at 61.51.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "52 Week Low" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Schlumberger Ltd.. Out of 66 times, SLB closed higher 54.55% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 74.24% with an average market move of 3.69%.