Bullish on Schlumberger Ltd

Schlumberger SLB-N (Friday’s close US$50.45) built a bullish, multi-year technical base pattern known as an Inverse Head-and-Shoulders (solid lines). The stock had a breakout above the neckline of this formation (dotted line) and reached a recent high of $49.82 to signal a breakout and the start of an uptrend toward higher targets (A).

The stock became overbought at this level and pulled back towards support near $33 (shaded area). The recent price action confirms the resumption of the long-term uptrend (B).

Behaviour indicators, including the rising 40-week Moving Average (40wMA) confirm the bullish status. A minor correction toward $45-47 would provide a better entry level. Only a sustained decline below $41-42 would be negative.

Point & Figure measurements provide targets of $59 and $64. The large Inverse Head-and-Shoulders pattern (solid lines) supports higher targets.

Monica Rizk is the Senior Technical Analyst of the Phases & Cycles publication (www.capitalightresearch.com). Chart source: www.decisionplus.com

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