Schlumberger (SLB) broke support with a surge in volume, but this support break did not hold as the stock surged with strong volume the last two weeks. The decline below 62 looks like a selling climax because of high volume and the gap down. The surge in volume flushes out of the sellers and paves the way for a bounce. SLB got its bounce with a two week surge that exceeded the 50-day EMA today. Notice that volume was above average five of the last nine days. I am not counting today's volume because the day is incomplete. Despite early signs of a bottom, the overall trend remains down with resistance marked in the 69-70 area. A breakout here is needed to fully reverse the long-term downtrend.
Follow me on Twitter @arthurhill - Keep up with my 140 character commentaries.
****************************************
Thanks for tuning in and have a good day!
--Arthur Hill CMT
Plan your Trade and Trade your Plan
*****************************************
