SLB unable to break through key resistance level
Schlumberger N.V. (SLB) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, SLB finished the month -1.36% lower at 18.14 after losing $0.30 (-1.63%) today, significantly underperforming the S&P 500 (0.77%). Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (SLB as at Jul 31, 2020):
Friday's trading range has been $0.64 (3.53%), that's slightly below the last trading month's daily average range of $0.74. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for SLB.
Four candlestick patterns are matching today's price action, the Bullish Doji Star and the Southern Doji which are both known as bullish patterns, one bearish pattern, the Gravestone Doji and one neutral pattern, the Doji. The last time a Gravestone Doji showed up on May 15th, SLB actually gained 12.54% on the following trading day.
Unable to break through the key technical resistance level at 18.39 (R1), the market closed below it after spiking up to 18.56 earlier during the day. The failure to close above the resistance might increase that levels importance going forward.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
As prices are trading close to July's low at 16.96, downside momentum could speed up should the stock mark new lows for the month.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Doji Star" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for Schlumberger N. V.. Out of 6 times, SLB closed lower 100.00% 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 66.67% with an average market move of -1.37%.