Anyone know why SLB has dived from Mon to Thurs this week? Any chance of a rise overnight!!!?

Question

SLB - Schlumberger NYSE

Answer 1

It's just the normal trend of the stock. It goes down for a couple days , then goes up for a week. This is also called a retracement and is quite normal. It can't keep going up day after day forever, right? It has to take a break and have some profit taking towards the top of its cycle. As long as it continues the short term trend, it'll probably be go back up soon. Also, it just made a resistance bounce and looks like it is about to make what is called a support bounce and that's where the buyers come back in because they think it's a good price. Another thing that is very important is the volume. It was very high in the first to the middle part of January where you see the positive price movement. It has since then edged off so you can speculate that the buyers have become exhausted and the profit takers have begun to sell. Luckily, the retracement period is normally shorter and faster than the ramp up in price (in an up-trending stock). I wouldn't worry until it breaks several areas of support ans I cannot say specifically what price levels because I don't know what type of trader you are (short term, trend, long term, etc). Good luck!

Answer 2

Schlumberger is actually is in good state. City analysts and others have weighed it around the 75 to 85 range. May be the investors factored in the expectations early and have booked some profit which made the price go down for a week. It will get back since the earnings expectations were exceeded this year by SLB. It is expected to do this for some time to come. For related stories type SLB symbol in www.marketwatch.com and select whatever you want to know about the stock SLB and happy times with SLB.