The past few months have been less kind to owners of Schlumberger (SLB), the $87 billion oil service provider. Year-to-date, Schlumberger has slid around 5%, underperforming the S&P 500 by 11.6%. But that downward direction looks like it's changing right now.
Schlumberger is forming an inverse head-and-shoulders pattern, a reversal setup that's identified by three swing lows -- two at around the same level (the shoulders) that are separated by a deeper one (the head). The buy signal comes when the neckline, the resistance level connecting all three lows, gets broken. SLB's neckline is currently at $68.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV