SLB soars, gaining $0.98 (5.38%) within a single day
Schlumberger N.V. (SLB) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, SLB ended Wednesday at 19.18 surging $0.98 (5.38%), notably outperforming the S&P 500 (-0.46%). This is the biggest single-day gain in over a month. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (SLB as at Sep 16, 2020):
Wednesday's trading range has been $1.17 (6.31%), that's far above the last trading month's daily average range of $0.68. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for SLB.
One bullish candlestick pattern matches today's price action, the White Candle.
The stock managed to close back above the 100-day moving average at 18.65 for the first time since September 9th. When this moving average was crossed above the last time on September 9th, SLB actually lost -4.84% on the following trading day. Prices are trading close to the key technical resistance level at 19.54 (R1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might accelerate should prices move above the close-by swing high at 19.68 where further buy stops could get activated. As prices are trading close to September's high at 19.68, upside momentum might speed up should the market mark new highs for the month.
Among the 12 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 100" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for Schlumberger N. V.. Out of 68 times, SLB closed lower 58.82% 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 55.88% with an average market move of -0.80%.