SLB closes lower for the 2nd day in a row
Schlumberger N.V. (SLB) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, SLB finished the week unchanged at 34.42 after losing $0.25 (-0.72%) today on low volume, underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (SLB as at Feb 14, 2020):
Friday's trading range has been $0.74 (2.13%), that's slightly below the last trading month's daily average range of $0.85. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for SLB.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on February 6th, SLB lost -0.26% on the following trading day.
Prices broke below the key technical support level at 34.52 (now R1), which is likely to act as resistance going forward.
Though Schlumberger N. V. is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Buying could speed up should prices move above the nearby swing high at 35.38 where further buy stops might get activated. Selling could accelerate should prices move below the close-by swing low at 33.97 where further sell stops might get triggered. With prices trading close to this year's low at 33.00, downside momentum could speed up should the market break out to new lows for the year. As prices are trading close to February's low at 33.19, downside momentum might accelerate should the share mark new lows for the month.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Support S1" stand out. Its common bearish interpretation has been confirmed for Schlumberger N. V.. Out of 229 times, SLB closed lower 50.22% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 54.15% with an average market move of -0.30%.