Our stock screener has spotted SCHLUMBERGER LTD (NYSE:SLB) as a possible breakout candidate. A technical breakout setup pattern occurs when the stock is consolidating after a nice uptrend. Whether the actual breakout occurs remains to be seen of course, but it may be interesting to keep an eye on NYSE:SLB.
Technical Analysis Observations
ChartMill assigns a Technical Rating to every stock. This score ranges from 0 to 10 and is updated daily. The score is determined by evaluating multiple technical indicators and properties.
Overall SLB gets a technical rating of 8 out of 10. This is due to a consistent overall performance, although we see some doubts in the very recent evolution. In the medium time frame things are still looking good.
- The long term trend is positive and the short term trend is neutral. The long term trend gets the benefit of the doubt for now.
- Looking at the yearly performance, SLB did better than 98% of all other stocks. On top of that, SLB also shows a nice and consistent pattern of rising prices.
- SLB is part of the Energy Equipment & Services industry. There are 92 other stocks in this industry. SLB outperforms 73% of them.
- SLB is currently trading in the upper part of its 52 week range. This is a good signal, certainly because the S&P500 Index is currently trading in the lower part of its 52 week range.
- In the last month SLB has a been trading in the 46.83 - 54.18 range, which is quite wide. It is currently trading in the middle of this range, so some resistance may be found above.
Looking at the Setup
Besides the Technical Rating, ChartMill also assign a Setup Rating to every stock. This setup score also ranges from 0 to 10 and determines to which extend the stock is consolidating. This is achieved by evaluating multiple short term technical indicators. NYSE:SLB currently has a 8 as setup rating:
Besides having an excellent technical rating, SLB also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is a resistance zone just above the current price starting at 50.22. Right above this resistance zone may be a good entry point.
How to trade NYSE:SLB?
A breakout could materialize when the stock breaks out to new highs above the current consolidation zone. One could wait for this to happen and buy when this happens. A stop loss could be placed below the consolidation zone.
Of course, there are many ways to trade or not trade NYSE:SLB and this article should in no way be interpreted as trading advice. The article is purely based on an automated technical analysis and just points out the technical observations. Always make your own analysis and trade at your own responsibility.
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