After spending over five years as a cellar-dweller, stuck in the red zone of the SIA S&P 100 Index Report, oilfield service giant Schlumberger (SLB) has seen its relative strength rebound this year. After moving up 10 spots in one day and 68 spots in the last month, SLB shares returned to the Green Favored Zone yesterday for the first time since June and the second time since 2014.
A major breakout is underway in Schlumberger (SLB) shares. Since a successful retest of $14.00 support, the shares hae come under renewed accumulation in the last month, staging a breakaway gap, snapping a downtrend line, regaining $20.00 and yesterday, blasting through the top of its previous $14.00-$21.00 trading range, all combining to signal and reinforce the start of a new recovery trend.
Initial resistance may appear at the June peak near $23.50, followed on trend by the $25.00 round number, a measured $28.00, the $30.00 round number and then the $32.00-$33.00 area where previous support and a pending measured move converge. Initial support appears near the $20.00 round number, then the top of a gap near $18.50.
Schlumberger (SLB) shares have roared back to life lately after drifting downward between June and October. In recent weeks, the shares have surged 50% from near $14.00 toward $21.00, completing a series of bullish Double and Spread Double Top patterns along the way, and snapping out of a short-term downtrend.Initial upside resistance may appear at the June high near $23.65, then $26.10, based on a horizontal count, then the $28.80 to $30.00 range where a vertical count, a previous support level, a round number and a long-term downtrend line cluster. Initial support appears between $19.80 and $20.00 where a 3-box reversal and a round number converge. With a bullish SMAX score of 7, SLB is exhibiting near-term strength against the asset classes.
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