Schlumberger Stock Could Rise 45% From Here

Shareholders and analysts got a nice report from SLB, formerly known as Schlumberger (SLB)  , Friday morning as the company announced better-than-expected fourth-quarter numbers on strong oilfield services demand.

Let’s drill down on the charts.

In the daily bar chart of SLB, below, I see an uptrend over the past 12 months. Prices are trading above the rising 50-day moving average line and above the rising 200-day line.

The trading volume has been more active since June and the daily On-Balance-Volume (OBV) line has moved higher with prices the past year. A rising OBV line helps to confirm the price gains. The Moving Average Convergence Divergence (MACD) oscillator is in a bullish alignment above the zero line.

In the weekly Japanese candlestick of SLB, below, I see a strong longer-term advance still underway. Prices have more than tripled in the past three years. SLB trades above the rising 40-week moving average line.

The weekly OBV line shows strength from July. The MACD oscillator is bullish. The candles do not show a top reversal pattern.

In this daily Point and Figure chart of SLB, below, I see a nearby price target of $62.

In this weekly Point and Figure chart of SLB, below, I see a potential price target in the $83 area.

Bottom-line strategy: Traders could go long SLB closer to $56 if available risking to $52. The $83 area is our price target.