Is A Reversal Coming?

Join Renowned Trading Instructor, Hubert Senters, for an exclusive lesson as he explains his best method for spotting trend reversals and breakouts.

Don't get caught flat footed by the next market reversal. Join now and learn how skilled traders can benefit from upcoming voalitility.

Hurry, this session starts soon!

Join Now

Schlumberger Limited (SLB) is a Houston based information technology services provider with a focus on the oil and gas sector. At the time of this post (10:40AM CST), SLB is currently trading at 76.83, down 1.99% on the day. SLB is also currently continuing to press its recently formed 52 week lows of 75.60, well off the highs of 118.76 which printed in early July. The stock has been in a steep decline ever since, as its value has been correlated closely with the continued slide in the price of crude oil. SLB is scheduled to report earnings today, 1/15/2015 after the closing bell.

Over the last eight quarters of earnings data available, SLB has traded relatively bullishly, moving higher on five out of eight sessions immediately following the EPS release. The average historical move during this same time period was a modest 2.8%. The options market is currently pricing in a larger than average average move of approximately 5.03% based on the price of the ATM straddle. This would represent a change of around 2.90 in the stock by tomorrow’s monthly options expiration date. SLB continues to decline in price and remains well below the downward sloping Ichimoku Cloud on the daily chart. With seemingly no end in sight for declining prices in crude oil and a bearish technical setup in this name, I will certainly be leaning bearish SLB going into this afternoon’s earnings announcement.

Andrew Keene

Pin It on Pinterest

Share This

Stop Sign

Don't Miss This Exclusive Training Session!

Join Hubert Senters and learn the best method for spotting breakouts.

Join Now (Click Here)

Get Our Free Daily Trading Videos

Delivered To your Inbox

By submitting your information you agree to our Terms of Service and our Privacy Policy