SLB closes above its opening price after recovering from early selling pressure
Schlumberger N.V. (SLB) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, SLB ended the week 10.22% higher at 17.58 after losing $0.21 (-1.18%) today on low volume, strongly underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Trading up to $0.48 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (SLB as at May 22, 2020):
Friday's trading range has been $0.63 (3.59%), that's far below the last trading month's daily average range of $1.03. Weekly volatility is also lower, being 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 17.00 and 18.50 where it has been caught now for the whole last trading week.
Three candlestick patterns are matching today's price action, the Hanging Man and the Northern Doji which are both known as bearish patterns and one neutral pattern, the Doji. The last time a Doji showed up on May 15th, SLB gained 12.54% on the following trading day.
Schlumberger N. V. shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying could speed up should prices move above the nearby swing high at 18.50 where further buy stops might get activated. Further buying could move prices higher should the market test April's close-by high at 18.60.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bullish Intraday Reversal" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for Schlumberger N. V.. Out of 449 times, SLB closed lower 53.45% 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 56.35% with an average market move of -0.91%.