u s stock focus further potential push up for schlumberger within range 2690892017

Technical Outlook on Schlumberger (SLB) (Click to enlarge charts) Key technical elements Since its 21 April 2016 high of 81.96, SLB has been evolving within […]

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By :  ,  Financial Analyst

Technical Outlook on Schlumberger (SLB)

Schlumberger_daily_12 Apr 2017

Schlumberger vs S&P 500_daily_12 Apr 2017(Click to enlarge charts)

Key technical elements

  • Since its 21 April 2016 high of 81.96, SLB has been evolving within an “Expanding Wedge/Triangle” range configuration with its lower boundary (support) at 77.28.
  • Last week‘s price action has tested the “Expanding Wedge/Triangle” range support and exhibited bullish elements.
  • The daily RSI has staged a bullish breakout yesterday (12 April) from its resistance at the 47% level and it also shaped a prior bullish divergence signal at its oversold region. These observations suggest that a revival in upside momentum of price action.
  • Yesterday’s up move in price action has been accompanied by an increase in volume, the highest in the last five trading days since 05 April 2017.
  • The significant medium-term resistances stand at 83.86 (also the close to the 61.8% Fibonacci retracement of the recent decline from 19 Jan 2017 high to 27 Mar 2017 low) and 87.84 (19 Jan 2017 swing high).
  • Relative strength analysis advocates for a potential medium-term outperformance of Schlumberger against the benchmark S&P 500.

Key levels (1 to 3 months)

Intermediate support: 78.67

Pivot (key support): 77.28

Resistances: 83.86 & 87.84

Next support: 72.00


As long as the 77.28 pivotal support holds, SLB is likely to shape a further potential upside movement within its “Expanding Wedge/Triangle” range to target the resistances at 83.86 before 87.84.

On the other hand, failure to hold above 77.28 may invalidate the preferred bullish scenario for a deeper decline towards the next support at 72.00

Charts are from eSignal


The material provided herein is general in nature and does not take into account your objectives, financial situation or needs. While every care has been taken in preparing this material, we do not provide any representation or warranty (express or implied) with respect to its completeness or accuracy. This is not an invitation or an offer to invest nor is it a recommendation to buy or sell investments. City Index recommends you to seek independent financial and legal advice before making any financial investment decision. Trading CFDs and FX on margin carries a higher level of risk, and may not be suitable for all investors. The possibility exists that you could lose more than your initial investment further CFD investors do not own or have any rights to the underlying assets. It is important you consider our Financial Services Guide and Product Disclosure Statement (PDS) available at www.cityindex.com.au, before deciding to acquire or hold our products. As a part of our market risk management, we may take the opposite side of your trade. GAIN Capital Australia Pty Ltd (ACN 141 774 727, AFSL 345646) is the CFD issuer and our products are traded off exchange.

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