Daily Stock Report

Schlumberger Ltd. - (SLB) - March 9, 2021 

Since we last mentioned oilfield service provider Schlumberger (SLB) in the November 21st issue of the Daily Stock Report, the shares have gained 37.5%. Their positioning within the SIA S&P 100 Index Report has remained in a sideways to upward trend, recently rising toward the top of the Green Favored Zone. Yesterday the shares finished in 8th place, up 3 spots on the day and up 25 spots in the last month.

Last fall, shares staged a breakaway gap up through their 50-day moving average and haven’t looked back, establishing an uptrend of higher lows and consistently trading above their 50-day average. Last month, the shares snapped a long-term downtrend line, confirming the start of a new uptrend. 

Currently, the shares are challenging the $30.00 round number which coincides with a support/resistance level dating back to 2018. A breakout here would confirm that the shares recovery trend remains intact. Next potential upside resistance on trend after that appears near $33.50 based on a measured move from a previous trading range, then the $40.00 round number. Initial support appears near $27.50 then $25.00 where a round number and the 50-day moving average converge.

Earlier this year, Schlumberger (SLB) shares broke out of a base clearing $23.40 to complete a bullish Spread Triple Bottom breakout. Since then, the shares have remained under accumulation and a new uptrend has clearly emerged with the shares snapping a downtrend line last month clearing resistance at an old support level near $29.65 yesterday. 

Next potential upside resistance appears in the $31.50 to $32.15 area where a horizontal count and previous column lows converge, followed by the $36.90 to $38.40 area where multiple vertical/horizontal counts and a previous column low cluster. Initial support appears near $27.40 based on a 3-box reversal. 

With a perfect SMAX score of 10, SLB is exhibiting near-term strength across the asset classes. 

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