At the late May lows shares of SLB had fallen over 28% from the April 2019 highs. From the late May 2018 highs the stock was off 52%. Since retesting the Christmas week lows on May 30th SLB has begun to firm up. At mid day today shares are up 3.25% and are trading above last week’s highs.
Highlights: SLB has been tracing out a divergent MACD low(daily) since December.
SLB sports a very low short interest ratio despite trading in a year long bear market in 2018. Current buyers are bullish, not forced.
We consider SLB a fairly low risk buy near current levels. Nearby support is in place between $36.20(last week’s high) and $34.50(May lows). A close below $34.00 would be a clear warning sign.
At time of publication we are long SLB in some managed accounts.