timwest
Long

SLB bullish triangle and flag implies 10%-20% upside

BATS:SLB   SCHLUMBERGER LTD
1504 12 13
Massive 5-year triangle in SLB             shares has come to a conclusion because the trendline connecting the "highest lows" across the previous rally highs has been surpassed, suggesting that the selling pressure is off of the stock.

I noted four other previous rally's in SLB             pasted onto the most recent low for reference. I simply thought it was interesting to see how fast it has rallied at times in the past. This stock gets into momentum stages very quickly.

The recent breakout occurred from a multi-month sideways "box" or accumulation zone labeled in green. Old resistance levels existed that SLB             had to get through, but now that both resistance levels have been crossed, it appears that SLB             is set to grind out a rally to higher levels near 90, then 100.

I believe SLB             will outperform the market also, so if you plot this stock against the SP500             using SPY             , it may be important to keep an eye on SLB/SPY to make sure that ratio is plotting along too during the course of this rally.

Cheers.

Tim 3:29PM EST, Wednesday, Aug 28, 2013
Subscribe to my indicator package KEY HIDDEN LEVELS $20/mo or a discount for a year and join in the trading room KEY HIDDEN LEVELS here at TradingView.com
Fantastic forecast
+1 Reply
timwest PRO Technician
Thanks Technician
Reply
SLB is reaching its target much faster than the slow-forecast I had put forth. The stock is moving along at the much faster, historically similar rallies labeled in green for reference. I could see exiting right here and/or tightening up the stop to avoid giving back the profit. I would also consider adding or re-entering on any 5%-8% dips in the shares on profit-taking.
Reply
Note that the forecast for the next 6-9 months is for sideways action - so for those of you who own this stock for the long haul, consider selling long term equity anticipation securities (LEAPS) for an additional 10% return. January 2015 95 strike calls are nearly $9, for example. That caps your return to 1% additional gain while you receive $9/share in your account overnight. That may sound like a boring return and it is. Options give you so much flexibility to adjust your risk profile, but it can also give you paralysis by analysis. Either way - SLB was an excellent chart opportunity and with oil prices falling now to eight-week lows, it makes sense to walk away here and reinvest in other oversold areas - perhaps MRK and other non-cyclical stocks. 11:42AM 10/22/2013
+1 Reply
2use timwest
One can't even add anything to this now
Reply
looks very good
Reply
Why wouldn't you draw overhead resistance above the higher highs and below the lower lows.... .I'm not sure that I agree that it has broken above resistance yet.....
+2 Reply
sublimares2 Chartaholic
That is one oblique resistances/ support and I agree with it. I would have another parallel resistance instead of the bullish flag top line but I suspect it was left out because is not tailoring the breakout from the ascending triangle. I do see a bearish crab pattern.
Reply
timwest PRO Chartaholic
The standard trendlines are obvious - but what I am showing with the trendlines is the "internal" resistance level that gives a leading indication of when the obvious trendline will break. What I am trying to show is something different, which is a very non-standard way to look at things but it makes sense to me to compare how HIGH UP in a rally that buyers can maintain prices rather than WHAT IS THE HIGHEST PRICE that buyers can push a stock up to. The "Highest Low" is more interesting to me than the "Highest High" for that reason. It takes only 1 fool to pay the highest price on the day, but it takes often-times a hundred fools to be buying on the highest day or week. I want to know what the "hundred fools" are doing moreso than that 1 fool. Is that a fair answer to your question?
+1 Reply
I re-read this passage and I think I could make it more clear. "It takes only 1 fool to pay the highest price on the day, but it takes often-times a hundred fools to be buying on the highest day or week." So, what I am saying is that I want to know the highest "RANGE" in a rally, not the highest "HIGH" in a rally. So, I am more interested in knowing the highest LOW of a rally than the highest HIGH of a rally. The "highest LOWS" tell me more about a market's trend than the highest high.
+1 Reply
United States
United Kingdom
India
Deutschland
France
España
Italia
Polska
Türkiye
Россия
Brasil
Indonesia
Malaysia
Việt Nam
日本
한국
简体
繁體
Home Stock Screener Forex Signal Finder Cryptocurrency Signal Finder Economic Calendar How It Works Chart Features House Rules Moderators Website & Broker Solutions Widgets Stock Charting Library Feature Request Blog & News FAQ Help & Wiki Twitter
Profile Profile Settings Account and Billing My Support Tickets Priority Support Contact Support Ideas Published Followers Following Private Messages Chat Sign Out