u s stock focus further potential push up for schlumberger within range 1849202017

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 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

Conclusion

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

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