Schlumberger Dips 0.62% Amid Technical Bearish Signals Below Key $34.30 Resistance

Schlumberger (SLB) declined 0.62% in the latest session, closing at $33.80 within a trading range of $33.72–$34.20. Below is a technical analysis integrating multiple methodologies per the requested framework.
Candlestick Theory
Recent price action shows SLB testing the critical support zone near $33.18 (June 25 low) after forming consecutive small-bodied candles. These indecision patterns emerged following the bearish Marubozu candle on June 23 (open near high, close near low). Resistance is firmly established at $34.20–$34.30 (June 24 and June 30 highs). A confirmed break below $33.18 would expose the April low of $31.11, while closing above $34.30 may signal short-term reversal potential.
Moving Average Theory
The 50-day MA ($36.52), 100-day MA ($38.21), and 200-day MA ($40.75) exhibit bearish sequencing, with all trending downward and price trading below all three. The widening spread between shorter and longer-term MAs confirms entrenched bearish momentum. Recent bounces have failed near the descending 50-day MA, underscoring its role as dynamic resistance. The prolonged sub-200-day MA positioning suggests a structural downtrend remains intact.
MACD & KDJ Indicators
The MACD histogram registers -0.58 with both lines in negative territory, though the MACD line shows tentative convergence toward the signal line. This hints at slowing bearish momentum. Meanwhile, the KDJ oscillator (current values: K=28.6, D=24.1, J=37.6) recently exited oversold territory (sub-20) with a bullish crossover, indicating potential short-term upside. Divergence exists between this KDJ recovery signal and MACD’s bearish stance, suggesting indecisive momentum shifts.
Bollinger Bands
Volatility contracted significantly after the June 23 expansion (12% price range), with bandwidth narrowing 22% over subsequent sessions. Price currently hugs the lower band near $33.50, typically indicating oversold conditions. A close back inside the bands would support reversal prospects, though sustained lower-band proximity risks breakdowns. The 20-day moving average ($34.80) within the bands aligns with the $34.30 resistance zone.
Volume-Price Relationship
Distribution days dominate the trend, with June 23’s 5.89% decline occurring on 258% of average volume—confirming bearish conviction. The subsequent consolidation saw diminishing volume, reflecting weak accumulation. Notably, the June 26 rally (+1.96%) registered only average volume, undermining its sustainability. Resistance breaks above $34.30 would require volume exceeding 18M shares to validate strength.
Relative Strength Index (RSI)
The 14-day RSI reads 36.5, approaching oversold territory but avoiding extreme readings. This metric has formed two consecutive higher lows against price’s lower lows since June 24, generating a positive divergence that may foreshadow a reversal. However, RSI has been capped below 50 (neutral) for 12 sessions, reinforcing bearish bias. Traders should treat any oversold bounce (RSI<30) cautiously within this macro downtrend.
Fibonacci Retracement
Applying Fib levels to the April–June decline (high: $38.93 April 16, low: $31.11 April 9), key retracement zones are evident: The 38.2% level ($34.36) rejected price on June 20 and June 24. The 50% level ($35.02) aligns with July 2024 swing lows. Confluence exists at $34.30–$34.36, combining Bollinger Band resistance and the 38.2% Fib. This zone remains pivotal overhead resistance, while the 23.6% level ($33.18) provides critical support.
Summary Confluences and Divergences
Confluence appears at $33.18 support (Candlestick, Fibonacci, and psychological level) and $34.30 resistance (Fibonacci, Bollinger Bands, and candlestick highs). Divergences exist between momentum oscillators—KDJ’s bullish crossover and MACD’s bearish stance—suggesting conflicted signals. The volume-price relationship and moving averages universally support bearish continuation, though Bollinger Band compression and RSI divergence hint at reversal potential. Probabilistically, bears maintain control below $34.30, with a sustained break above needed to shift near-term bias.