Schlumberger set to rally more as oil prices climb

Oil services company Schlumberger Ltd (SLB) is due to release its results on Friday morning. Let’s see how the graphics are positioned.

In this daily bar chart of SLB, below, we can see that SLB has been making higher lows and higher highs over the past 12 months – the simple definition of an uptrend. Prices surged rapidly from mid-December during its last rally. SLB is trading above the rising 50-day moving average line as well as the rising 200-day line.

The On-Balance-Volume (OBV) line shows a base over the past five months and a move above the October high would be encouraging. The Moving Average Convergence Divergence Oscillator (MACD) is in a bullish alignment above the zero line.

In this weekly Japanese candlestick chart from SLB, below, we can see that prices have firmed since the pandemic low of early 2020. Prices are trading above the rising 40 moving average line weeks.

The weekly OBV line is up from its March 2020 low but stuck in a sideways pattern. The MACD oscillator has been above the zero line for the past year and has just risen towards a new buy signal.

In this daily dot-and-digit chart from SLB, below, we can see a potential price target at the $51 area.

In this weekly Point and Figure chart from SLB, below, we used only close price data to reach a price target of $78.

Background strategy: I have no particular knowledge of what SLB might report on Friday. In our October 20 review, we wrote that “Traders should continue to hold long positions in the $28 area”. The pullback in December may have stopped some traders. If it’s still long, our price targets are $51 and now $78.

Receive an email alert each time I write an article for Real Money. Click “+Follow” next to my signature for this article.

Source link

Felix J. Dixon