Schlumberger shares could be up 45% from here


Shareholders and analysts received a nice report Friday morning from SLB, formerly known as Schlumberger (SLB), as the company released better-than-expected fourth-quarter earnings on strong demand for oilfield services.

Let’s take a closer look at the charts.

In SLB’s daily bar chart, below, I see an upward trend over the past 12 months. Prices are trading above the rising 50-day moving average line and above the rising 200-day line.

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Trading volume has been more active since June and the daily On-Balance-Volume (OBV) line has increased with prices over the past year. A rising OBV line helps confirm price gains. The Moving Average Convergence Divergence (MACD) oscillator is in a bullish alignment above the zero line.

In SLB’s weekly Japanese candlestick, below, I see that there is still strong longer-term upside going on. Prices have more than tripled in the past three years. SLB is trading above the rising 40-week moving average line.

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The weekly OBV line shows strength from July. The MACD oscillator is bullish. The candles show no top reversal pattern.

In this daily Point and Figure chart from SLB, below, I see a near price target of $62.

In this weekly Point and Figure chart from SLB, below, I see a potential price target in the $83 area.

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Bottom line strategy: Traders may want to go long SLB closer to $56 if available, with risk as high as $52. The $83 area is our price target.

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