Schlumberger Ltd. had a sharp decline from $95.53 (U.S.) to $54.79 (A-B), a recovery rally to $80.78 (C) and then settled in a bullish technical pattern known as a “W” formation (dashed lines). The recent rise to $82 (E) signalled the breakout above the middle of the “W” pattern (D) and the start of a new up-leg. Current levels should provide a good entry point (F). Only a decline below $71-$72 would be negative.
Point & Figure measurements provide targets of $89 and $94. The large “W” formation (dashed lines) supports higher targets.
Monica Rizk is the senior technical analyst for Phases & Cycles Inc. (www.phases-cycles.com). Ron Meisels is a contributor to the www.NA-marketletter.com website and Tweets at @Ronsbriefs. They may hold shares in companies profiled. Please see the site for a glossary.