SLB closes below its opening price unable to hold early session gains
Schlumberger N.V. (SLB) Technical Analysis Report for Oct 23, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, SLB ended the week 2.87% higher at 15.40 after edging higher $0.10 (0.65%) today, slightly outperforming the S&P 500 (0.34%). Trading $0.32 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (SLB as at Oct 23, 2020):
Friday's trading range has been $0.61 (3.95%), that's slightly below the last trading month's daily average range of $0.69. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for SLB. Prices continued to consolidate within a tight trading range between 14.91 and 15.78 where it has been caught now for the whole last trading week.
Two candlestick patterns are matching today's price action, the Bearish Spinning Top and the Bearish High-Wave Candle which are both known as bearish patterns. The last time a Bearish High-Wave Candle showed up on September 4th, SLB lost -4.82% on the following trading day.
After spiking up to 15.78 during the day, Schlumberger N. V. found resistance at the 20-day moving average at 15.70.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling could accelerate should prices move below the close-by swing low at 14.91 where further sell stops might get triggered. As prices are trading close to October's low at 14.52, downside momentum could speed up should the market mark new lows for the month.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish High-Wave Candle" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Schlumberger N. V.. Out of 16 times, SLB closed higher 68.75% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after nine trading days, showing a win rate of 50.00% with an average market move of 0.55%.