SLB closes lower for the 2nd day in a row
Schlumberger N.V. (SLB) Technical Analysis Report for Sep 18, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, SLB ended the week 4.81% higher at 18.73 after losing $0.35 (-1.83%) today on high volume, underperforming the S&P 500 (-1.12%). Trading $0.55 higher after the open, Schlumberger N. V. was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (SLB as at Sep 18, 2020):
Friday's trading range has been $0.82 (4.36%), that's slightly above the last trading month's daily average range of $0.69. 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.
After spiking up to 19.34 during the day, the market has been sold off at those price levels and formed a bearish Pin Bar closing $0.61 below today's high. Additionally, two candlestick patterns are matching today's price action, the Bearish Hikkake Pattern and the Bearish Spinning Top which are both known as bearish patterns.
Prices are trading close to the key technical support level at 18.37 (S1). The stock closed back below the 50-day moving average at 19.02. After having been unable to move lower than 18.45 in the prior session, the share found buyers again around the same price level today at 18.52. The last time this happened on August 19th, SLB actually lost -4.82% on the following trading day.
While SLB is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Buying could speed up should prices move above the nearby swing high at 19.39 where further buy stops might get activated. As prices are trading close to September's high at 19.68, upside momentum could accelerate should Schlumberger N. V. mark new highs for the month.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Pin Bar" stand out. Its common bearish interpretation has been confirmed for Schlumberger N. V.. Out of 3 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 -3.92%.