SLB runs into sellers again around 15.64
Schlumberger N.V. (SLB) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
SLB finished Thursday at 15.52 gaining $0.92 (6.3%), slightly outperforming the S&P 500 (6.24%). The bulls were in full control today, moving the market higher throughout the whole session. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (SLB as at Mar 26, 2020):
Thursday's trading range has been $1.26 (8.68%), that's below the last trading month's daily average range of $1.89. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for SLB. Prices continued to consolidate within a tight trading range between 12.60 and 15.87 where it has been caught now for the whole last trading week.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Additionally, one bullish candlestick pattern matches today's price action, the White Candle.
After having been unable to move above 15.87 in the previous session, the market ran into sellers again around the same price level today, failing to move higher than 15.64. The last time this happened on Monday, SLB actually gained 14.19% on the following trading day.
Though the stock 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 15.87 where further buy stops might get activated.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to prior High" stand out. Its common bearish interpretation has been confirmed for Schlumberger N. V.. Out of 531 times, SLB closed lower 50.47% 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 51.41% with an average market move of -0.40%.