SLB - neutral formation but oversoldhi traders
Analyzing the chart of Schlumberger Limited (ticker symbol: SLB), we can identify the
formation of a symmetrical triangle pattern, indicating a potential breakout in the near
future.
Schlumberger Limited (SLB) is worth investing in due to its position as a leading player in the
oilfield services sector, which is experiencing a rebound as global energy demand rises
nowdays. Additionally, its commitment to sustainability and digital transformation enhances
its long-term growth prospects.
Additionally, SLB noteworthy that the Relative Strength Index (RSI) is currently under 30,
sitting at 22.37. When RSI falls below 30, it typically indicates that the stock is oversold,
suggesting that it may be undervalued or trading at a discount relative to its intrinsic value.
This oversold condition, combined with the potential breakout from the symmetrical triangle
pattern, adds further conviction to a potential long position.
As symmetrical triangles typically suggest a period of consolidation before a significant price
movement, entering a long position appears favorable at this stage. The entry point could be
considered once the breakout from the upper trendline of the triangle pattern is confirmed.
This trading idea is based on the symmetrical triangle pattern and supported by the oversold
condition indicated by the RSI.
However, as we can see the price broke down already, but we're not getting any follow-through yet. It may be fake out so before you enter short, wait for some follow-through.
If you want to long, it's reasonable to wait for a price to reclaim the support and next wait for a break out to the upside.
2 possible scenarios are shown on the chart
Good luck
